Governance

High-level governance implemented by each business area

The Banque de France and the ACPR apply their climate strategy to all their key tasks, namely monetary strategy, financial stability, provision of services to the economy, and sustainability. Responsibility for coordinating and executing the strategy lies with governance bodies at several levels, ranging from senior management to operations.

 

A climate strategy defined by the Executive Committee

The Executive Committee, which includes the Governors and Directors General of the Banque de France and the Secretary General of the ACPR, sets broad guidance for the Banque de France to follow in terms of fighting climate change, as part of the process of drawing up the corporate strategic plan. It also oversees the consistency of the climate strategy applied across the different business areas.

The corporate plan and strategic guidelines are submitted for approval to the General Council, which is kept abreast of progress in implementing the climate roadmap. The College of the ACPR approves all publications by the supervisory authority on the topic of climate change and closely followed the development of the pilot exercise of climate scenario analysis in 2021 and 2022.

Initiatives designed to take account of climate change are also defined in conjunction with specific governance bodies, some of which are external, such as the Eurosystem Governing Council for monetary policy and the Single Supervisory Mechanism for banking supervision.

 

Coordination by the Strategic Committee for Sustainable Finance

The growing importance of climate change-related work has led to the establishment of new cross-cutting structures to ensure that the business areas are properly coordinated.

Established in 2020 under the chairmanship of Deputy Governor Sylvie Goulard, the Strategic Committee for Sustainable Finance is responsible for coordinating the Bank’s sustainable finance initiatives at international, European and domestic levels. The committee guides the work done in this area by the Bank and the ACPR and ensures its coordination with initiatives underway internationally, in Europe and in France.

 

Operational implementation by the Climate Change Centre

In April 2021, the Banque de France set up a Climate Change Centre (CCC), which was given three primary tasks:

  1. Coordinate the implementation of initiatives by the Banque de France and ACPR to take account of climate issues (excluding the CSR strategy)
  2. Analyse the risks associated with climate change for the financial sector, working closely with business experts from the two institutions
  3. Provide the permanent global secretariat for the NGFS

The CCC’s goal is to make the Banque de France’s actions even more effective by drawing on new skills and unlocking synergies between the Directorates General. The centre is also tasked with ensuring that the Bank’s work is aligned with international initiatives spearheaded by the NGFS. The CCC deepens and widens the roles assigned to the former Sustainable Finance Division set up in 2019, which has made the Banque de France one of the world’s very first central banks to have a team entirely devoted to climate issues.

The CCC is coordinated by the Executive Committee for Climate Change, which brings together all Banque de France Directorates General and the General Secretariat of the ACPR. This committee is responsible for drawing up the CCC’s work programme and making sure that the roadmap applied by the cross-cutting working groups moves forward on schedule.

Monetary policy and financial stability: coordinated initiatives at European level

Monetary policy-related work is conducted within the framework of the Eurosystem. The Banque de France was involved in drawing up the roadmap for greening the ECB’s monetary policy and is working to execute it according to the agreed-on timetable.

The ACPR’s financial stability-related activities are conducted at European level within the Single Supervisory Mechanism as regards microprudential supervision of the banking sector.

 
 

The ACPR Climate and Sustainable Finance Commission

Set up in October 2019 following the marketwide agreement of 2 July 2019, this commission is chiefly tasked with aiding the ACPR in monitoring the sustainable finance commitments made by the financial intermediaries under its supervision. Against this backdrop, it seeks to promote constructive dialogue with financial community stakeholders.

Every year, it publishes a joint report with the AMF's Climate and Sustainable Finance Commission on the commitments made by French financial institutions.

 

Check out the interactive table of contents

Updated on: 11/30/2022 10:31