n August last year, France became the first country to introduce mandatory climate change-related reporting for institutional investors….
The reporting obligations are set out under Article 173 of France’s law on “energy transition for green growth”, with an implementing decree setting out the requirements in greater detail.
Effective since the beginning of January, the decree applies to a wide range of investors, including asset managers, insurance companies, Caisse des Dépôts et Consignations and pension and social security funds.
They are being required to report not only on how they integrate environmental, social and governance (ESG) factors in general into their investment policies – and, where applicable, risk management – but also specifically on how climate change considerations are incorporated.
The law makes France the first country to introduce mandatory carbon reporting by investors, according to Trucost.