English translation of the joint annual report of ADEME and Sustainable Finance Observatory analysing ’29 LEC’ / SFDR reports of French investors is available.
The Climate Transparency Hub (CTH) of ADEME and the Sustainable Finance Observatory publish the annual report analysing more than 800 ‘Article 29 LEC’ / SFDR reports submitted by French financial institutions in 2024 for the 2023 financial year.
This English version is an informal translation made with DeepI Pro of the French report available here. The translation has been manually checked but the reader is advised that typos and mistakes might remain. In case of discrepancies between the current report and the French report, the latter shall prevail.
Context
Since the French Energy and Climate Law of 8 November 2019 and the decree implementing Article 29 thereof of 29 May 2021, French investors have been required to publish annually, in what was previously known as the ‘Article 173 LTECV’ mechanism , which is now known as ‘Article 29 LEC’, 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 provision is an extension of the European SFDR regulation.
In order to give these reports greater visibility and facilitate their analysis, the law entrusts ADEME, the French government agency with expertise in climate-related issues, with the task of collecting and publishing these reports in a centralised manner on a publicly accessible website: the Climate Transparency Hub (CTH). ADEME carries out an annual analysis of these reports, with the aim of identifying statistical trends in reporting and improving the practices of financial actors. Until 2024, this analysis was carried out with the contribution of the LIFE Finance ClimAct programme and, from 2024 onwards, in coordination with the Sustainable Finance Observatory, which also provides support for the collection of reports on the CTH.
2024 Report
This study covers the 2024 ‘Article 29 LEC’ and SFDR PAI submissions for the 2023 financial year. These submissions include, on the one hand, 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 therein) but also the submission of standardised annexes to the ACPR for insurers and the AMF for portfolio management companies and banks (credit institutions or investment firms for their portfolio management activities on behalf of third parties and investment advice).
This study:
✅ Updates the statistical analyses carried out in recent years, using the standardised submission format
✅ Produces a qualitative analysis of key topics (climate and biodiversity strategies) based on a sample of 34 entities (12 insurers and 22 asset management companies, including 12 generalists, 5 private equity firms and 5 real estate companies)
✅ Highlights the practices of stakeholders and conveys messages with a view to improving them
The topics covered are:
➡️ Climate strategies (portfolio decarbonisation and transition financing)
➡️ Taxonomy ratios (eligibility, alignment)
➡️ The fossil fuel share of portfolios and fossil fuel exit policies
➡️ Biodiversity strategies
➡️ Article 8 and Article 9 assets
➡️ PAI indicators (SFDR): scope 1, 2 and 3 GHG emissions of portfolios, energy mix of production and consumption, biodiversity-sensitive areas
The study provides additional insight into climate strategies, complementing the joint ACPR/AMF annual report, the fourth edition of which is available here.
📆 A webinar in French presenting the report was held on Friday, 28 February at 11:00 a.m. The presentation materials and replay are available below.
Contact: cth@finance-climact.fr