Article 173-VI (for investors) and Article 173-IV (for companies) of France's Law on Energy Transition for Green Growth

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France's 2015 Energy Transition Law requires institutional investors and companies to provide information on the way that they take into account climate change as well as environmental, social, and governance (ESG) factors into their strategies and decision making (Article 173-VI for investors, and Article 173-IV for companies)—both how investments could impact climate/ESG factors and how these factors could impact investments.

The Article 173-VI applies to two key components of the investment process: asset management companies and institutional investors. The regulation concerns all asset classes: listed assets, venture capital, bonds, physical assets, etc. The implementation decree provides for lighter obligations for investors with AUM or consolidated balance sheets below 500 million euros. Article 173 - VI reinforce ESG climate policies of all players in the investment value chain: it states a regulatory obligation for issuers to provide investors with the information that is adapted to their meeds so that investors are able to analyse the risks and opportunities related to climate change. Article 173-VI encourages investors to incorporate the ESG Climate approach into their investment strategy in two ways: the impact of the investment on ESG Climate factors and the impact on the investment of ESG Climate factors. Beyond this regulatory obligation, investors are increasingly asking companies about their climte strategy. Article 173-IV is to companies what article 173-VI is to investors. It asks companies to provide "information on the way they take account of the social and environmental consequences of their activity and of their social commitments in favour of sustainable development, the circular edconomy, the fight against food waste, and the fight against discrimination and promoting diversity.

Building on this, France passed the Law on Climate and Energy in 2019, which includes an update to the requirements on non-financial reporting by investors. Under the 2015 law, only climate issues are covered, but the new 2019 law also takes into account "the preservation of the biodiversity of the ecosystems and the natural resources, in particular the participation in the objective of zero net artificialisation and the use of renewable energy."