France round-up: Government includes nuclear in Greenfin label revision

IFD publishes climate transition governance recommendations; BNP Paribas AM updates global sustainability strategy.

The French Ministry of Ecological Transition has altered the label criteria of France’s Greenfin label to include nuclear power, in line with the EU Taxonomy. In a decree published this week, it announced that labelled funds will be able to invest in “all economic activities enabling the production of energy from nuclear technologies”, including fuel cycle and radioactive waste management technologies.

Since its creation by the ministry in 2015, the Greenfin label has excluded all energies that were not considered green at the time, including fossil and nuclear energy. According to the ministry’s website, 106 funds with €35 billion in assets currently hold the Greenfin label. It comes as France completed the revision of its broader SRI label in December, introducing stricter criteria on fossil fuels and transition plan requirements for high-impact sectors.

The Institut de la Finance Durable, the French financial centre’s sustainable finance initiative, has published a report setting out climate transition governance recommendations for companies. Around 30 interviews were conducted for the report with rating agencies, proxy advisers, market authorities, non-financial companies and investors.

The report suggests that companies present their climate strategies, and the way these are being implemented, at AGMs. This should cover different trajectories, including medium- and long-term objectives, and highlight any possible deviations from the proposed climate trajectory. The IFD also proposes a requirement for at least one executive remuneration criterion to be linked to the company’s climate objectives, and for board members to receive regular training in CSR-related topics.

Finally, it advises companies to set up various committees (CSR committee, audit committee, risk committee), which then will take a co-ordinated approach to the supervision of climate risk and transition plan efforts within the company (including CSRD reporting).

BNP Paribas Asset Management has updated its global sustainability strategy for the first time since its release in 2019, outlining six priorities for the next two years. The priorities include maintaining a “bold” stewardship approach; widening the range of investment solutions that embed sustainability; driving sustainability in emerging markets; and continuing to produce science-led research alongside the Global Research Alliance for Sustainable Finance and Investment.

The €524 billion asset manager has also included updates on its forest and water analyses, and outlined efforts to engage on deforestation, sustainable proteins and plastics pollutions.