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Société Française des Analystes Financiers

SFAF

Association à but non lucratif qui a notamment pour objet : 1 - de regrouper les professionnels de l'investissement, du financement et de leur écosystème, faisant appel aux techniques de l'analyse financière, extra-financière ou exerçant des fonctions associées, transverses ou connexes, de faciliter leurs rapports avec les organisations pour lesquelles ils travaillent 2 - de développer le dialogue entre ces professionnels et les organisations qui sont l'objet de leurs travaux, d'assurer la concertation avec les autorités et les institutions chargées d'organiser le fonctionnement du marché des valeurs mobilières, d’enrichir les compétences dans un esprit de pluridisciplinarité, de rechercher les convergences avec les professions voisines ; 3 - de faciliter le bon exercice de leur profession, de veiller à leurs qualification et professionnalisme, au respect de la déontologie et de promouvoir la reconnaissance de leur statut et de leur fonction.

Lobbying Activity

Response to Initiative on EU taxonomy - environmental objective

2 May 2023

The French Society of Financial Analysts (Société Française des Analystes Financiers, SFAF) welcomes the opportunity to give feedback and comments on several elements of the documents submitted for consultation on 5th April 2023. - On re-use and sharing economy: there is a wear and tear limit regarding leasing in the Taxonomy activities classification and sharing economy does not always seem like the most appropriate choice. Moreover, because of the DNSH on social matters, people are risking addiction to certain types of mechanisms and may found themselves in financial troubles. - Cross thematic on different activities: For example, on pharmaceutical preparation, there is no warning about toxic chemicals that may be found in the final medicine, and which may pollute wildlife later. However chemical products are mentioned in other activities. =>Cross thematic reveals a variety of subjects. However, under which activity the classification should be made? =>Need of clarification on this aspect in order to avoid double-counting. This clarification is particularly important for portfolio managers which funds may be dedicated to a particular objective. - Disregarding the thematic or activity, companies will have to be precise on their field of activity on which they are eligible or aligned. On climate objectives, the methodology and explanation on the area of eligible activities is often very succinct. =>Need of clarification on materiality assessment from companies. - The impact assessment for activities affecting biodiversity is very interesting. It is a key exercise which will help determine and legitimate eligibility and alignment. - The future of an aligned activity? An activity may be aligned to the Taxonomy standards in year X but what about year Z when climate targets will have evolved. Is the taxonomy and its templates adaptable to those evolutions? - Is the regulation taking into consideration physical limits? For example, on pollutants and radioactivity. In many circumstances, references to local documents should be mandatory. - The annexes seem to minimise negative impacts on objectives when technology cannot make it possible to fully prohibit them. =>Need of real commitment to minimizing negative impacts - Fearing new legal risks for companies watched by financial analysts because of activity or strategy changes. - Can investments with a predefine objective be linked to another objective on its turnover and cashflow? Depending on the indicator, can the classification change? - On the templates: At first glance, the template in Annex 5 page 6 does not look very coherent: it seems like activity 1 is reported in the two first lines. It can be confusing for the readers. Also, on the DNSH, it could be interesting to add percentages and not only « yes » or « no » answers. Moreover, a concrete example of application could help the understanding.
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