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There is no sufficiently robust and exhaustive methodology available to answer this question and the Declaration does not specifically address the topic of biodiversity.

Already, financial players are reporting on their commitments through their various publications (ESG reports, performance statements, etc.). However, achieving the objectives of the Paris Agreement can only be successful if all stakeholders are mobilised. Businesses and public authorities must also support this transformation because finance alone will not be able to transform the economy.

The European taxonomy is a key milestone in the development of sustainable finance. By establishing a common "grammar" of green and transition activities, the European Union is taking an important step and strengthening its leadership on these issues. The Observatory will seek as far as possible to align its reporting of the green share of investment and finance with this taxonomy.

Today, these tools are not considered perfectly reliable indicators because the diversity of methodologies used, the lack of ESG data and the reliability of existing data, as well as the variety of sectors analyzed, make it difficult to gain an overall understanding of the issues.

The lack of standardization and comparability is mainly due to the unavailability of granular information at the company level, especially for SMEs in a sector. On this last point, providers of sustainability data and ratings generally use information provided or disclosed by the companies themselves, which has been widely demonstrated not to fully meet the current requirements of the NFRD[3].

Moreover, ESG ratings rely heavily on backward-looking information, which is not a reliable indicator of future performance.

Green/sustainable investment has become a must for the various market players. By signing the declaration under the aegis of the Government, the players are making a public commitment and may incur a high reputational risk that would be damaging to their business. It is worth noting that all institutional actors today have a policy towards coal or are in the process of implementing it.

As early as 2015, Article 173 of the Law on Energy Transition and Green Growth defined disclosure requirements for institutional investors regarding their consideration of environmental and social parameters, a world first, which inspired recent European legislation. French players are at the forefront of transparency on these topics and are already required to report on how they contribute to meeting international and national climate change targets.