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During this occasion, Marion Aubert, co-founder & Chief International Officer, took part in the roundtable discussion "Accountability: credible metrics, targets and governance."
The financial sector finds itself at a crucial turning point in its transition toward a more sustainable model.
Despite commitments made, reality reveals a significant gap between stated ambitions and concrete actions. A recent study by Reclaim Finance highlighted that none of the 20 largest European banks has a credible transition plan aligned with a 1.5°C trajectory.
This observation underscores the urgency to rethink our approaches to sustainable finance. It's no longer simply about displaying ambitions, but implementing concrete, measurable, and scientifically-based strategies.
Defining credible and measurable transition objectives is at the heart of any effective sustainable finance strategy.
Furthermore, to avoid accusations of greenwashing and strengthen the credibility of transition strategies, it's essential to add a binding dimension to objectives.
To be truly effective, transition objectives must be anchored in climatology. For example, committing to engage with a specific number of companies to help them build credible transition plans, or allocating a defined percentage of assets to companies with SBTi-approved net-zero targets.
Aligning financial strategies with the Paris Agreement has become imperative for the financial sector. However, this alignment poses numerous challenges, both in terms of methodology and implementation.
SBTi targets have become central to capital allocation decisions. However, their adoption doesn't in itself guarantee real progress. A study by Morningstar Sustainalytics revealed that none of the 9,500 companies in their universe with SBTi targets actually has a transition plan aligned with a 1.5°C scenario.
To truly assess progress, additional indicators must be examined, such as absolute emissions, carbon intensity, and the evolution of financial indicators. We advocate for a 360° approach to analyzing portfolio companies. This multidimensional approach is crucial as it puts different data into perspective. On average, our clients use 5 different data sources and approximately 400 KPIs. This diversity of sources and indicators allows for a more nuanced and complete understanding of the climate performance of companies and portfolios.
The rapid evolution of the sustainable finance regulatory framework, particularly with the introduction of CSRD (EU) and SDR (UK), is transforming how sustainability objectives are defined and how the performance of financial institutions is measured.
The CSRD requires the publication of transition plans aligned with the ESRS E1 standard, including Scope 3 emissions and CapEx alignment. In the United Kingdom, TCFD(1) and TPT(2) are becoming market standards.
SFDR 2.0, meanwhile, represents a major evolution. According to 2025 data, if this regulation were applied today, none of the 50 funds analyzed in the 2025 Sustainable Finance Barometer produced by Weefin would be eligible for the "transition" category. This highlights the magnitude of the challenge facing the sector.
To improve this situation, we advocate for a structured approach: constructive but firm engagement, based on evidence, and results-oriented. A clear escalation process is crucial when engagement doesn't produce the expected results. This may include divestment, voting against management, or changing portfolio exposure.
Effective ESG data management is fundamental to support these engagement strategies and meet growing regulatory requirements. However, effective ESG data management poses several challenges: multiplicity of sources, data quality and consistency, and rapid evolution of metrics.
We are convinced that technology, combined with deep expertise in sustainability, is the key to addressing these challenges and transforming the financial sector into a driving force for a more sustainable future. Discover our 2025 Sustainable Finance barometer, assessing the current state of ESG practices.
(1) TCFD : Task Force on Climate Related Fiancial Disclosures
(2) TPT : Transition Plan Taskforce
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