Editorial - March
The Perrier Report
For several years now, as part of our Economic and Financial Outlooks, we have been talking about the widespread rise of the recovery of political power in general. Here is a new example that illustrates this very well.
On 9 March, the Perrier Report entitled "Making the Paris financial centre a leader in the climate transition: a framework for action" was published. The publication of this report marks a new stage in France's commitment to leadership in sustainable finance. This is demonstrated by the disclosure of this report at a ministerial conference focusing on the relationship between energy autonomy and the ecological transition, within the framework of the French Presidency of the Council of the European Union.
The initial "order" was clearly to align public and, especially, private financial flows with the financing of the energy transition in accordance with the Paris Agreement.
What conclusions can be drawn following the publication of this Report?
On the one hand, the main levers used by the Authorities vis-à-vis private investors (voluntary commitments and the reporting and control of these commitments) will be significantly strengthened.
On the other hand, a new milestone is about to be reached with the proposal to create a "political body" directly managed by the public authorities, which will determine strategic guidelines, while an operational body will be responsible for implementing them.
« The primary compass of the French economy as a whole and, even more so, of finance, is thus officially aligned with the Paris Agreement. Private financial flows will increasingly be used. »
The question is that in discussions surrounding the notion of "stakeholders", key to any financial ecosystem, there is an important voice missing: that of the private saver. For example, in the Perrier Report, among the organisations or institutions interviewed for the "associations, civil society and research" section, there is no representation of individual savers, but rather a predominance of NGOs and organisations with a clear focus on climate issues. The question of the alignment of interests across the entire savings and investment chain arises when we observe that the final risk holder does not have a say.
Executive Director, Director of Strategic Intelligence, External Relations, and coordination of Group relations in terms of sustainable finance and public affairs
March 16, 2022
Covéa Finance, a portfolio management company of the MAAF, MMA and GMF groups with share capital of €24 901 254, incorporated as a single-person simplified joint stock company, registered with the Paris Trade and Companies Register under number 407 625 607 and approved by the French Financial Markets Authority under number GP 97 007.
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Editorial - March 2023
That bit extra:
is extraterritoriality the new frontier of extra-financial?