Disclosure drives divestment and has a global impact

Research has found that French institutional investors have reduced their exposure to fossil fuel investments in response to climate and ESG disclosure requirements Although the regulation was domestic, it has had a global impact on non-euro investments, and those subject to more activist engagement have seen the greatest divestmentNew sustainable finance disclosures – and the trend towards more ESG and climate-related disclosure – will increase the significance of responsible finance for financial institutions around the world

Climate disclosures are becoming more common globally and this is bringing greater clarity to the risks that financial institutions face. New research has found that the imposition on financial institutions of France’s Article 173 law m...