Article 29 of the Climate and Energy Law applies to the financial sector (insurance, banking, asset management companies) for collective management, discretionary management and investment advice.
To comply with these new reporting requirements, the regulation recommends that portfolio management companies analyse the investment sectors of their funds.
In France, Article 29 of the Energy and Climate Law is a reference in terms of taking biodiversity into account in fiduciary management.
The Energy and Climate Law and its Article 29 place biodiversity at the heart of the strategic thinking of management companies
In France, the law on energy and climate enacted in 2019 requires asset management companies to have a strategy of alignment with long-term objectives related to biodiversity and to carry out an analysis of the contribution to the reduction of the main pressures and impacts on biodiversity defined by the IPBES*.
Article 29 of the Climate and Energy Law applies to the financial sector (insurance, banking, asset management companies) for collective management, discretionary management and investment advice. Entities, collective investment undertakings and management mandates with more than 500 million euros in assets or assets under management must comply with all the articles of the decree.
Annual reporting to demonstrate the strategic alignment of investments with four long-term objectives
Published in May 2021, the implementing decree requires annual publication within six months of the end of the financial year and transmission of this report to the AMF and ADEME**.
To define an alignment strategy in line with these new requirements, financial companies must implement an analysis of the contribution of their investments to the four long-term objectives of the 1992 Convention on Biological Diversity (CBD):
1. Enhancing the stock of biodiversity
2. Conservation of ecosystem services
3. Equitable access to ecosystem services
4. To have the financial means to achieve the first three objectives.
To comply with these new reporting requirements, the regulation recommends that portfolio management companies analyse the investment sectors of their funds to identify the sectors that are sensitive to biodiversity issues, the pressures of these investments on biodiversity and the mitigation measures implemented or not to limit them.
This dual materiality approach involves not only studying the extra-financial risks likely to affect investments but also the negative impacts of these investments on sustainability factors.
A dual materiality approach
In addition to analysing the impact of their investments on biodiversity, French legislation requires an analysis of the impact of biodiversity on their investments. This dual materiality approach is like the one applied to European regulations: it involves not only studying the extra-financial risks likely to affect investments but also the negative impacts of these investments on sustainability factors.
* IPBES : Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services
**ADEME : Agence de l’environnement et de la maîtrise de l’énergie
About Positiveco
At Positivéco, we see new national and international CSR regulations as vectors for positive growth.
Our job: to improve the readability of your activities for better valuation.
Since 2009, we have been supporting financial institutions, public players, and listed and unlisted companies in the evaluation of their CSR policies, the production of their extra-financial reporting and the implementation of their climate investment and aid projects. Development.
Make an appointment today and find out how to meet the new requirements of economic transparency while serving the project of your company.
Contact us now!