Article 29 of the Energy and Climate Law (29LEC): the French Treasury published FAQs in April 2024
Executive Summary
The AMF publication highlights FAQs issued by the French Treasury in April 2024, clarifying key aspects of Article 29 of the Energy and Climate Law (29LEC) reporting obligations for French financial institutions on sustainability integration in investment activities. This matters for compliance teams as it addresses practical ambiguities in scope, consolidation, and EU interactions post-2023 reporting cycles, reducing interpretive risks amid expanding ESG mandates like SFDR. Firms must review these to ensure accurate 2024+ submissions via the Climate Transparency Hub (CTH). #
What Changed
No new regulatory changes are introduced; the FAQs provide interpretive guidance on existing 29LEC requirements from the Energy and Climate Law (8 November 2019) and implementing Decree (29 May 2021). Clarifications cover: - Scope of application: Defines entities required to report on ESG integration (e.g., portfolio asset management companies, ISPs). - Consolidation rules: How to aggregate data across group entities. - Interactions with EU rules: Alignment with SFDR, including narrative reports and standardized annexes to ACPR (insurers) or AMF (portfolio managers/banks). #
What You Need To Do
- Read and implement French Treasury FAQs
- Update 29LEC reports
- Integrate clarifications
- Monitor CTH
Key Dates
Compliance Impact
Urgency: Medium - Not critical as FAQs clarify existing rules without new mandates, but high relevance for 2024/2025 cycles to avoid supervisory scrutiny from AMF/ACPR amid thematic inspections on asset manager governance. Matters due to rising ESG enforcement, SFDR synergies, and public transparency via CTH, with potential fines for non-compliance in sustainability disclosures.
Who is Affected
Summary
Asset management Sustainable Finance Article 29 of the Energy and Climate Law (29LEC): the French Treasury published FAQs in April 2024