BackAnalysis of French investors' “Article 29 LEC” / SFDR reports
ADEME's Climate Transparency Hub (CTH) and the Sustainable Finance Observatory are publishing the annual report analysing the 800+ ‘Article 29 LEC’ / SFDR reports submitted by French financial institutions in 2024
Context
Since the Energy and Climate Act of 8 November 2019 and the implementing decree for its Article 29 of 29 May 2021, French investors have been required to publish annually in what was the ‘Article 173 LTECV’ scheme and is now the ‘Article 29 LEC’ scheme, a report describing their practices for taking into account sustainability aspects in the broadest sense (environmental, social and governance criteria) in their investment activities. This system is an extension of the European SFDR regulation.
In order to give global visibility to this work and make it easier to analyse, the law entrusts ADEME, a government agency with expertise in climate-related issues, with the task of collecting and publishing these reports centrally on a website accessible to the public: the Climate Transparency Hub (CTH). ADEME carries out an annual analysis of these reports, the aim of which is to identify statistical trends in remittances and to improve the practices of financial players. The analysis was carried out until 2024 with the contribution of the LIFE Finance ClimAct programme, and from 2024 in coordination with the Sustainable Finance Observatory, which also provides support for the collection of reports on the CTH.
2024 Report
This study concerns the ‘Article 29 LEC’ 2024 remittances for the 2023 financial year. These submissions include not only the filing of narrative reports on the CTH website, in a format that meets the requirements of the implementing decree (i.e. the nine topics covered), but also the submission of standardised annexes to the ACPR for insurers and to the AMF for portfolio management companies and banks (credit institutions or investment firms for their third-party portfolio management and investment advice activities).
📆 A webinar presenting the report was held on Friday 28 February at 11am, the replay of which can be accessed below.
This study:
✅ Renews the statistical analyses carried out in recent years, by exploiting the standardised remittance format
✅ Produces a qualitative analysis of key topics (climate and biodiversity strategies) on a sample of 34 entities (12 insurers and 22 asset management companies, including 12 generalist, 5 private equity and 5 real estate).
✅ Highlights players' practices and conveys messages to help them improve
Topics covered include:
➡️ Climate strategies (decarbonising portfolios and financing the transition)
➡️ Taxonomy ratios (eligibility, alignment)
➡️ The fossil fuel content of portfolios and policies for exiting fossil fuels
➡️ Biodiversity strategies
➡️ ‘Article 8’ and ‘Article 9’ outstandings
➡️ PAI indicators (SFDR): GHG emissions from scopes 1, 2 and 3 of portfolios, energy production and consumption mix, biodiversity-sensitive areas, etc.
The study provides additional information on climate change strategies to the joint ACPR/AMF annual report, the 4th edition of which is available here.
Contact: cth@finance-climact.fr
Webinar Replay
Friday 28 February 2025