Mandatory climate disclosure has contributed to French investors curbing their investments in fossil fuel companies by a massive 40%, a study by the country’s central bank has concluded.
Banque de France (BDF) compared securities held by French institutional investors with those of French banks and other European financial institutions that face no comparable disclosure requirements. It found that the former group had reduced their exposure to fossil fuel companies significantly more than the latter.
Overall, a total of 15,523 fossil fuel securities - comprising 12,167 bonds and 3,356 stocks - were analysed in the period from Q4 2014 to Q3 2019.
The study found that French investors were twice as likely to axe producers of coal and “unconventional” fossil fuels than conventional oil and gas. Critically, researchers said dumping fossil fuels was shown to have no correlation to poor market performance.
The study comes three years after Franc…