FR - AMF overview of SFDR classifications and fossil fuel exposure of the French funds
The AMF published on 23 March 2023, an overview of SFDR classifications introduced by SFDR regulation in the French fund market. This assessment covers 10,600 French collective investment schemes, representing assets under management of more than €1.9 trillion at end-2021. As this assessment is based on data at end-2021, it does not consider the possible reclassifications made by some funds, especially over the fourth quarter of 2022.
At the end of 2021, one-fifth of French funds representing half of the assets under management promoted environmental or social characteristics (Article 8 funds) or claimed a sustainable investment objective (Article 9 funds):
Article 8 funds by themselves account for 19% of the market by number and 47% of assets under management
Article 9 funds account for 2% of the number and 3% of the total net assets of French funds.
Furthermore, this study compares these classifications with the portfolios’ exposure to fossil fuel industries. The results suggest that the definition of Article 8 funds is probably not very discriminating and support the AMF's proposal to introduce minimum environmental criteria that financial products should comply with in order to be classified as Article 9 or Article 8 under the SFDR.