The rapid acceleration in climate change, the chain of social crises, the accelerated erosion of biodiversity, and the latest health crisis have triggered a new frenzy of financial regulation. This time, the focus has been on environmental, social, and governance issues commonly referred to as “ESG,” which call for a profound transformation of our economic system by taking better account of the extra-financial problems.

The European Union and France are part of this dynamic, working, in particular, to adopt a series of standards to guide the behavior of increasingly committed players, often beyond any legal requirements. As forerunners, they play a leading role in responsible finance based on the following observation: finance and law can no longer ignore the natural and social environment in which they operate.

The normative production in the field of responsible finance, estimated at more than 2,000 legislative proposals since 2016 worldwide, is thus about to deliver to investment firms a significant regulatory burden that they will have to manage operationally in a short time.

Thanks to its European Sustainable Finance Plan, the European Union will soon have the most advanced and abundant regulatory model on ESG topics. The purpose of this article is to propose a popularization of these regulations and the primary obligations they will soon impose on financial institutions.

⇒Eager to read more?

Discover the latest briefing note, written by Sarah Labbé, in partnership with the association Les Acteurs de la Finance Responsable (AFM)

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Les Acteurs de la Finance Responsable (AFR) is an association declared under the law of July 1, 1901, whose ambition is to federate a community of responsible finance experts and to contribute to the development of best practices around the major French and international issues of responsible finance.

 To know more about the association : website