In December 2020, the Autorité de contrôle prudentiel et de résolution (ACPR) and the Autorité des marchés financiers (AMF) published a report on the monitoring of climate commitments of French financial institutions, including banks, insurers and asset management companies. The second report published on November 3rd, continues the analysis with an assessment of exposure to fossil fuels (oil and gas), and focusing on non-conventional hydrocarbons.
This second report examined developments in the policies of French financial players and its main findings were that while financial institutions updated and completed their thermal coal policy in 2020, they did not sufficiently implement increased policy transparency and comparability. There are disparities in the measurement of exposure to coal-related companies and estimates for oil and gas exposures remain “very fragile”.
For fossil fuels, market participants are encouraged to “put in place robust, transparent and comparable policies on all fossil fuels in a timely manner”.
The report provides further details on the main features of oil and gas policies and the methodological approaches to measuring exposures for bank, insurance and asset management industry participants.