As the EU prepares a Q4 revision of the Sustainable Finance Disclosure Regulation (SFDR), French investors remain split on ESG fund classification reforms—a debate that may reshape the bloc’s carbon neutral strategy and green finance credibility. 

Asset managers like Amundi advocate for mandatory product categorization to combat greenwashing. Supported by the French Asset Management Association (AFG), Amundi proposes three ESG-driven fund categories: “sustainable,” “transition,” and “E, S, G,” aligned with the EU’s carbon neutrality goals. They also urge the EU Commission to clarify definitions and align with ESMA’s fund-naming guidance. 

In contrast, BNP Paribas AM calls for simplified ESG criteria, warning that overly rigid definitions—especially those tied strictly to the EU Taxonomy—may hinder disclosure efficiency. The firm suggests a streamlined framework with minimal due diligence burdens, pushing for fewer reporting requirements to ease compliance. 

Insurers are equally divided. Maif supports gradual transition and clear regulatory mapping, while Aéma Groupe emphasizes regulatory coherence to prevent greenwashing. Meanwhile, Crédit Agricole and La Banque Postale AM demand disclaimers for funds outside ESG categories to prevent misleading sustainability claims. 

Caisse des Dépôts echoes this call, saying “unclassified products” should be flagged to discourage non-compliant ESG labeling. Groupe BPCE urges the EU to balance innovation with regulation by avoiding definitions that stifle performance or niche market growth. 

Opponents of sweeping reforms—like AXA Group—warn that overhauling SFDR categories would waste resources with little added value. They favor targeted fixes over system-wide changes. 

Overall, French stakeholders agree on the need for clarity and consistency. But the path forward—whether preserving Articles 6, 8, and 9 or adopting new ESG-aligned classifications—remains contested. The outcome will shape the EU’s ESG strategy, investment transparency, and carbon neutral ambitions. 

Source : 

https://www.responsible-investor.com/french-investors-split-over-way-forward-for-sfdr-product-categories/