Since 2018, the Banque de France has applied a responsible investment (RI) approach to the investment portfolios for which it is solely and fully responsible (i.e. non-monetary policy portfolios). Initially developed for the own funds and pension liabilities portfolios, the strategy has been progressively expanded to euro-denominated own portfolios held against the monetary base along with foreign exchange reserves. Portfolios covered by the RI approach were worth EUR 130 billion at 31 December 2024.
To structure its approach, the Banque de France has put together a set of reference documents that are updated on a regular basis. These include its Responsible Investment Charter, which sets out the main principles of its responsible investment strategy, and the voting policy it implements at general meetings of companies in which it is a shareholder.
The framework consists of an operational strategy organised into three pillars that reflect the Banque de France’s priorities:
Each year, the Banque de France reports on the progress made in its strategy and towards its objectives in a dedicated chapter in its Sustainability Report.
Pillar 1: Climate and nature
The Banque de France is committed to incorporating global warming issues and the preservation of nature and ecosystems into its responsible investment strategy. It has set itself three objectives:
1. Reducing the climate impact of its portfolios by aligning their equity component with a greenhouse gas emissions trajectory compatible with global warming of less than 1.5°C above pre‑industrial levels by 2025. This objective has been extended to cover corporate bonds by the end of 2026.
2. Excluding issuers whose involvement in fossil fuels exceeds the thresholds set for the Paris-Aligned Benchmarks.
3. Contributing to financing the energy and ecological transition (EET) and to preserving biodiversity by investing in thematic funds and green bonds.
Pillar 2: Environmental, social and governance criteria
Under Pillar 2 of its strategy, the Banque de France is committed to incorporating environmental, social and governance (ESG) criteria into its asset management.
At the upstream stage of its investments, and to align with the minimum exclusion ratio of the French SRI label, the Banque de France excludes at least 30% of companies from its corporate universe based on ESG criteria. At the downstream stage of its investments, the Banque de France pursues its transparency approach by disclosing a series of indicators each year on its portfolios’ ESG performance. Since 2021, integrating ESG issues into its asset management has also led to impact investing through thematic funds and social bonds.
Pillar 3: Voting policy
To fulfil its role as a responsible shareholder, the Banque de France applies a tailor-made policy in exercising its voting rights, encouraging better recognition of issues related to environmental, social and governance (ESG) risks by the companies in which it invests. It is through this lever that the Banque de France intends to act on the “governance” dimension of ESG, by setting requirements for corporate best practice. The Banque de France aims to exercise its voting rights to the full at the general meetings of companies in which it is a shareholder.
Updated on the 28th of July 2025