Following a review by the French Ministry of Economics and Finance, the framework of the French Socially Responsible Investment label (Label ISR) was revised to create a more demanding framework for fund designation, with more stringent climate criteria.
The label’s committee launched a consultation on the new framework proposed additional requirements, including double materiality, in line with the demands of the Sustainable Finance Disclosure Regulation (SFDR). It also recommended that funds be required to measure the effect of their investments on ESG by considering the principal adverse impacts (PAI).
We submitted a response to the consultation, calling for the label to be more explicitly linked to EU sustainable finance regulation and promoting the organisation’s approach to corporates transition plans.
The Label ISR committee plans to analyse the consultation responses before submitting its final proposal to the French Ministry of Economics and Finance in mid-July.