European financial players facing the new requirements of extra-financial transparency

In March 2018, the European Commission unveiled its action plan for sustainable finance. The creation of a Green Asset Taxonomy, the development of Green Bonds Standards, and “sustainable” financial indicators was, among others, part of the ten actions announced. The desire to increase transparency about sustainability factors integration in investment decisions has resulted in the publication of the so-called “Sustainability-Related Financial Disclosure” regulation (EU 2019/2088 SFDR), which came into force on March 10, 2021.

In parallel with European requirements, Article 29 of the new French Energie-Climat law reflects France’s ambition to maintain its lead in sustainable finance. Indeed, this article complements the European SFDR regulation by reinforcing the content of the extra-financial reporting to be published, formerly known as the “173 Report” in reference to article 173-VI of the Energy and Ecological Transition for Climate (TEEC) law. Its decree, which came into force on May 28, 2021, encourages better integration of climate and biodiversity issues into risk management and investment decisions.

Through this expert opinion, I Care wishes to explore how financial players have appropriated these new regulations, particularly with regard to the scope of application and the positioning of financial products between Articles 8 and 9. Some of the operational difficulties encountered by financial actors, particularly with regard to indicators and data availability, will also be addressed.

I Care offers you a look at how financial players are adopting the new regulations and collecting data for it with YWCA #11: European financial players facing the new requirements of extra-financial transparency.

This expert opinion, written in September 2021 by Maelys Lecrivain and Romane Delevoie, is part of a series of publications called “Yes We Care About” that is published by I Care, and which you can find in the “Expert Opinions” section by clicking here.

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