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Presentation of the French
Sustainable Finance Observatory
The European Commission is not responsible for any use
that may be made of the information this presentation
contains
How to track the Article 2.1c
of Paris Agreement?
22/02/2023
OECD Workshop on Metrics for ClimateTransition and Net-Zero GHGs in Finance
This project has received funding from the European
Union’s LIFE program under grant agreement
LIFE18IPC/FR/000010 A.F.F.A.P.

An Observatory to track the alignement of
the Paris Financial Center towards the Paris’ Agreements goals
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Strong impulsion from civil society!
2015:
COP21 and Paris
agreement
Politics:
The French
Ministry of
finance engages
financial actor Regulation:
ART. 173 and 29LEC
covering non financial
disclosure
European funding:
LIFE project won by
french consortium
Involvement of the Private
sector:
Steering comittee composed by
major representative financial
associations
Scientific and Expert
Commitee:
Publish independant
recommandations
Public support:
Funding and
methodologies
from ADEME
COP26:
One Planet Data
Hub
COP27:
OPDH and
GFANZ launch
CDSC.
COP28:
NZDPU

What kind of data are being monitored?
Private sector Public sector
Tracking
commitment
Monitoring
flows and practices
Common
definition and
methodologies
Guide to define minimum
criteria of credible
commitments
Portfolio alignment : PACTA
voluntary assessment within
the banking sector but result
unpublished
Use of Ugerwald list
We are tracking 4 types of data:
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• +1500 commitments analysed
• Grids to improve the understanding and
comparison of commitments
• NZA in 2023
• Details sectoral policy analysis on
Coal, Oil and GAZ policies
• Exposition on fossils of the Paris
Place
• More than 100 indicators on climate
and ESG : labels, green bonds
Still cannot answer of the real transfomation of the Paris
Financial Center!
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Running a study:
2022
First phase of the consultation:
47 answers mostly from Frenchs
participants ie 3 banks etc…
February 2023
2 workshops:
Finance Climact
and OECD
February - March 2023
Final phase for
international
participation
June 2023
Publication
What indicators should be used to monitor the
transformation of financial actors, on an individual and
global scale?
• Determine the most relevant indicators to monitor the transformation of financial actors and
which methodology to use
• Questions on 12 performance indicators and 11 indicators of means, Perimeter of financial
activities monitored, Aggregation of sectorial policies, Aggregation of temperature calculations,
Aggregation and perimeter of exposure calculations, Monitoring of the financing of companies in
transition…
• Get answers and compare result from all actors of the financial center: Private actors,
publics, actors, and represent of civil society.
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Running a study:
What indicators should be used to monitor the
transformation of financial actors, on an individual and
global scale?
Consultation’s intermediate results and
key feedbacks and analysis:
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Alignment indicators
Table 1: Adhesion’s rate of respondent by alignment
indicator
Indicators Adhesion Rate
1.
Portfolio or balance sheet energy mix
in GWh
49%
2.
Portfolio or balance sheet
temperature calculation
63%
3.
Portfolio or balance sheet sector
alignment calculation
63%
➢ Very heterogeneous responses: depending
on private actors, public actors and civil
society.
➢ Strong expectations but a lot of concern about
the methodological robustness.
➢ Lack of maturity and the diversity of the
methodologies make the comparison of
results impossible,
❖In France there is a project hold by Institut
Louis Bachelier: CAPA project: study for a
methodology to calculate the alignment of a
global financial center.
Study: What indicators should be used to monitor the transformation of financial actors,
on an individual and global scale?
Consultation’s intermediate results Key feedback and analysis
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Regulatory and standard indicators
➢ The risk-based approach of regulatory
reporting has limits, particularly in the case
of a simple materiality approach.
➢ Regulatory reporting will suffer from a lack of
methodological standards.
➢ Regulatory reporting does not always cover
all activities, e.g. flow investment tracking not
available with the pillar 3 of the Bale
Agreement,
Study: What indicators should be used to monitor the transformation of financial actors,
on an individual and global scale?
Table 2: Adhesion’s rate of respondent by regulatory
and standard indicator
Indicators Adhesion Rate
1.
The Green Asset Ratio according to the
European Taxonomy
53%
2.
The 18 mandatory environmental and
social indicators of the SFDR regulation
(Disclosure)
37%
3.
The definition of the products according
to article 6, 8 and 9 of SFDR (Disclosure)
29%
4.
Art 29 loi énergie-climat on measuring
the biodiversity footprint and
contributing to the reduction of impacts
on biodiversity
45%
5.
CSRD according to EFRAG
recommandations
47%
6. ISSB (under development) 20%
7.
Art 29 LEC on strategies for alignment
with the Paris Agreement
67%
Consultation’s intermediate results Key feedback and analysis
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Exposure and investment monitoring indicators
Table 3: Adhesion’s rate of respondent by exposure and
investment monitoring indicators
Indicators Adhesion Rate
1.
Investment / Financing of sustainable
activities according to the European
Taxonomy
76%
2.
Investment / Financing of "harmful“
activities to the climate and biodiversity
76%
3.
Issues / Structuring / Investments in
sustainable bonds
49%
4.
Emissions / Investments in labelled
products
41%
➢ The monitoring of investments in harmful
activities appears to be a high priority,
There is a need for a taxonomy of "harmful
activities for climate and biodiversity”.
➢ Very heterogeneous and limitation
depending of the methodology used to
evaluate the fossil’s exposure.
➢ Need to find a way to track the financement
of the transition.
❖ 2 approach's identified:
• Work on a transition taxonomy at
international level.
• Create in open data a list of
companies certified in transition with
a robust mythology: SBTi / ACT / CIA.
Study: What indicators should be used to monitor the transformation of financial actors,
on an individual and global scale?
Key feedback and analysis
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Consultation’s intermediate results

Participate in the study
Call for participation!
Contact: c.sarlin@ifd-paris.com
https://observatoiredelafinancedurable.com/en/eocd/report
February 2023
2 workshops : Finance
Climact and OECD
February-March 2023:
Final phase for international
participations
June 2023
Publication of
the study
Nov-Dec 2023
French Climate
Finance Day
COP28
There is two ways to participate in this study:
• Answer the study as an individual or an organisation
• Share an expert position with one page analysis connected
with one of the topics of the study : you can contact Caroline
Sarlin on this matter: c.sarlin@ifd-paris.com
Organisation of side event:
r.lebel@ifd-paris.com
Study: What indicators should be used to monitor the transformation of financial actors,
on an individual and global scale?
Get the intermediate report with full results and
key questions (OECD event participants only):
Consultation’s intermediate results
Download the survey to participate in the study
before 31th March 2023.
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Merci !
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The European Commission is not responsible for any use
that may be made of the information this presentation
contains
This project has received funding from the European
Union’s LIFE program under grant agreement
LIFE18IPC/FR/000010 A.F.F.A.P.