Art 224, Grenelle Act II, 2010

France Current 2010

Art 224 states that mutual funds have to mention in their annual report and their documentation how environmental, social and governance quality objectives have been taken into account in their investment policy. The report should explain which criteria have been assessed and how they are embedded in the decision-making process. It should also disclose how voting rights have been exercised. The decree established a presentation framework for all due information, such as: tools and methodology in place to take into account ESG objectives, ESG criteria used (including sector-specific), percentage of value of the mutual funds which take into account ESG criteria, and impact of the assessment on the investment and divestment process.

Scope

General sustainability/ESG/non-financial

Industry sectors covered by the instrument

All/none specified

Organizations covered by the instrument

Mutual funds

Issuer type

Environment

Type of instrument

Legislation

Mandatory or voluntary

Mandatory

The geographical scope

National/federal

Project Partners