French consumers still don't know what kind of future their savings are financing | WWF
French consumers still don't know what kind of future their savings are financing

Posted on 23 November 2018

A few days before Climate Finance Day and the opening of COP24, WWF France published its second study on the implementation of Article 173 of the Energy Transition Law by 17 major French insurers.
Since mid 2017, Article 173 of the Energy Transition for Green Growth Act has required institutional investors, including insurers, to be more transparent about their contribution to financing the low-carbon energy transition as well as their risk management of climate change.

Lack of simple, accessible, relevant information

Our 2017-2018 analysis was supported by surveys carried out by WWF France volunteers. Between July and September 2018, WWF France volunteers conducted 180 online inquiries and interviewed commercial agents of 17 insurers.

The findings are clear. While information made available by insurers is improving, together with the emergence of new analytical tools, savers do not yet have access to clear information about the link between their savings and climate change.

Only 13% of "investigators" felt that the information available to them under Article 173 allowed them to answer simple questions about the link between climate change and their savings.

After two consecutive reporting rounds, the French Government is required to report before the end of 2018 on the implementation of these new provisions by investors.

Insurers take action

In this second year of reporting, WWF France welcomes the development that two insurers (BNP Paribas Cardif and AG2R La Mondiale) are offering "thermometer" portfolios to illustrate the alignment of their portfolios equity and corporate bonds with a 2°C warming trajectory. Although methodologies used in obtaining this indicator could be further developed and better explained, the information is relevant and readable.

WWF France also welcomes the few insurers (Allianz, Aviva, Axa and CNP) who have demonstrated real ownership of the TCFD (Taskforce on Climate-related Financial Disclosures ) in structuring their reports on Article 173. The implementation of these international recommendations by financial institutions, including insurers, allows them to harmonise their climate reporting practices, thereby promoting convergence of methodologies and date comparability.

Further Information

To access the first report, please visit the WWF France website.

Financial Centre
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