Posted by Célestine Barthout and Sébastien Praicheux on 17 November 2020
Tagged to ACPR, AMF, Sustainable Finance

On the 2nd of July 2019, the French banking and financial authorities, the ACPR and AMF announced the implementation of a framework aimed at monitoring and assessing the commitments related notably to the evaluation of the impacts of climate changes in the banking and finance industry, and made by Paris financial center participants (banks, insurers and asset management companies) as part of the wider “Paris financial center” group and initiative.  The findings of such framework will be reported upon annually and the a more comprehensive report is expected to be published and the end of 2020.

The ACPR recommends in particular that as part of the coal exit strategy, banks continue ongoing work to measure institutions’ exposure more effectively, including through the establishment of transparent and verifiable methods. This authority, based on the observations of the group, has underlined the role of federations in this process, for a coordinated and harmonised approach and also for the dissemination of best practices. The ACPR further advocated that transactions, financial instruments and other services affected by the institutions’ coal policies should be disclosed on a “visible and transparent manner”.

This preliminary report contains also recommendations related to thresholds for coal exclusion in financing policies and provides details of examples of exclusion ratios in the current French banking industry. It is worth noting that according to the ACPR, the main elements of the thermal coal value chain should be systematically incorporated into these policies but on the same time, the ACPR is largely recommending to simplify the conditions of application of the exclusion criteria to provide less complexity to the public.

Coal policies of Paris financial centre participants (banks, insurers, asset managers): first joint ACPR/AMF monitoring and evaluation report 

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