Article 29 of the Energy and Climate Law is a real milestone in the evolution of the French regulatory framework for sustainable finance. This text introduces increased requirements in terms of transparency and reporting, redefining compliance standards for financial institutions committed to a more sustainable strategy for managing their investment portfolios.
Article 29 of the 2019 Energy and Climate Law establishes a strengthened framework for monitoring and publishing sustainability data. This provision requires the entities concerned to set up an infrastructure for collecting, analysing and disseminating non-financial information, structured around specific quantitative and qualitative indicators relating to the impact on the climate and biodiversity.
Article 29 has three interrelated objectives: to increase the transparency of environmental strategies, to standardise the reporting of sustainability data, particularly data related to climate and biodiversity, and to facilitate comparability between actors. This regulatory framework aims to strengthen the credibility of sustainable finance by imposing a structured reporting discipline. The approach involves systematic and rigorous data collection, enabling an objective assessment of the alignment of portfolios with sustainability trajectories.
Article 29 is a continuation of Article 173 of the 2015 Energy Transition for Green Growth Act, while introducing substantial changes. Whereas Article 173 favoured a qualitative approach to sustainability reporting, Article 29 establishes a more restrictive quantitative framework. This change is reflected in increased requirements for the granularity of climate and biodiversity data. The new system thus strengthens the structure of regulatory ESG reporting and allows for a more detailed assessment of compliance with sustainability objectives.
Article 29 has a strategic dimension in terms of biodiversity preservation by establishing a direct link between financial flows and ecosystem erosion. While the framework initially focuses on climate issues, it is gradually incorporating indicators relating to the impact of investments on biodiversity, recognising the fundamental interdependence between climate change and the collapse of living organisms. By requiring financial institutions to be more transparent about their exposure to sectors with a high environmental impact (deforestation, intensive agriculture, mining), Article 29 encourages the reallocation of capital to activities that respect ecosystems. This regulatory change anticipates future biodiversity reporting requirements that will profoundly transform the way investment risks and opportunities are assessed. Financial institutions are thus encouraged to develop robust methodologies for analysing their impact on biodiversity, and reporting targets are set that contribute to the emergence of finance that is truly aligned with planetary boundaries.
The provisions of Article 29 apply to a wide range of financial actors: asset management companies, institutional investors, banking institutions and insurance companies. Once they reach a threshold of €500 million in assets under management across their various portfolios, these entities are required to align their reporting practices with the standards defined by this text.
Subject institutions must publish structured reports incorporating ESG indicators. The regulatory framework requires, in particular, the disclosure of greenhouse gas emissions (scope 1, 2 and 3), analysis of exposure to physical and transition climate risks, and the alignment of portfolios with the objectives of the Paris Agreement. This multidimensional approach to regulatory reporting aims to provide stakeholders with a comprehensive and comparable view of responsible investment practices. The text also includes a section dedicated to biodiversity: the financial institutions concerned must measure the impact and exposure of their investments in relation to this issue.
Failure to comply with the obligations of Article 29 exposes the entities concerned to a double risk: administrative sanctions and reputational damage. Supervisory authorities have graduated powers of investigation and sanction. Beyond the financial aspects, non-compliance generates a systemic risk of mistrust on the part of investors and stakeholders. In an environment where credibility is a strategic asset, shortcomings in regulatory reporting can permanently compromise the competitive positioning of players.
Article 29 introduces a structured transparency requirement that transforms the way financial information is communicated. By requiring the systematic and standardised publication of ESG data, this regulation promotes the democratisation of non-financial information. This development strengthens market discipline and allows investors to exercise greater control over the practices of asset managers. The mechanism thus helps to reduce information asymmetry and enhance the efficiency of the sustainable finance market.
Article 29 is a public policy instrument aimed at aligning capital flows with the goals of decarbonising the economy. By imposing a rigorous methodology for measuring and publishing the carbon footprint of portfolios, this regulation encourages financial institutions to integrate climate considerations into their decision-making processes. This approach is part of a systemic transition in which finance plays a role in accelerating ecological transformation.
Article 29 promotes the structural maturation of the responsible investment market by requiring full traceability of allocation decisions. This accountability requirement changes the incentives for asset managers, who now incorporate sustainability criteria from the early stages of portfolio construction. Regulatory reporting thus becomes a lever for transforming practices, promoting the emergence of investment strategies aligned with long-term issues.
WeeFin offers an integrated technology platform that automates the collection and quality control of sustainability data. The solution is based on a modular architecture that centralises all non-financial information flows, ensuring traceability and auditability. Integrated control mechanisms detect anomalies and ensure data consistency, enabling institutions to secure their regulatory reporting while optimising their operational processes.
The WeeFin platform incorporates advanced automation features that streamline the production of regulatory reporting. Our modular approach allows adaptation to the specificities of each institution while ensuring compliance with Article 29 standards. The automation of data aggregation and consolidation processes significantly reduces production times and minimises the risk of error.
Article 29 of the Energy and Climate Law and Articles 8 and 9 of the SFDR are two complementary mechanisms with distinct purposes. Article 29, which is more ambitious than the SFDR, imposes a climate reporting framework on financial institutions as a whole, while Articles 8 and 9 of the SFDR establish a classification of financial products according to their sustainability characteristics. These two regulatory approaches converge towards greater transparency, while operating at different levels of the financial system.
The Article 29 mechanism targets financial institutions of significant size. Companies are therefore not directly covered by this regulation. However, they would benefit from anticipating a gradual convergence of reporting standards, particularly with a view to developing their relationships with financial institutions.
Although complementary, the two mechanisms are very different from each other. Article 29 is part of French legislation and applies to financial players, not to other companies. The CSRD is a European regulation that applies to companies throughout the European Union. The criteria for determining which companies are affected by this text were revised in 2025 as part of an omnibus bill that raised the threshold for application: only companies with more than 1,000 employees and a turnover of more than €450 million will be subject to mandatory CSRD reporting.
Passed as part of the 2019 law, Article 29 came into force in 2022.
Preparing for Article 29 audits requires the implementation of robust internal ESG data governance processes. This involves formalising collection methodologies, establishing quality control procedures, and compiling comprehensive documentation to justify methodological choices. Institutions that rely on proven technological solutions minimise their exposure to compliance risks and optimise their ability to respond in the event of an inspection.
Article 29 marks a structural change in the regulatory framework for sustainable finance in France. By imposing significantly higher standards of transparency and reporting, this legislative provision accelerates the maturation of the market and promotes the alignment of investment practices with climate and biodiversity preservation objectives. Financial institutions now face the challenge of adapting, which will require substantial technological and organisational investments.
