France has one of the world’s most sophisticated asset management industries. With firms predominantly based in a city whose name is almost synonymous with carbon neutrality, it is fitting that domestic regulatory ambitions could see funds distributed in France showing more interest in biodiversity.
There is an argument that biodiversity is more important than net-zero carbon in the fight to stabilise climate change. France’s Article 29 of the Law on Energy and Climate is putting greater emphasis on this topic, with higher levels of biodiversity disclosure by corporates.
The implication for fund managers is that they will need to “produce alignment and associated methodological details” of long-term objectives related to biodiversity, according to one commentator (see our report).
If these rules go beyond disclosure requirements in the EU, might this be the industry’s first example of a cross-border fund domicile seeking to ‘green plate’ its regulatory regime?!
Nick Fitzpatrick, Group Editor, Funds Europe
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