Climate and Resilience Law (Loi n. 2021-1104 du 22 aout 2021), Article 12 and related articles on environmental advertising

Article 29 requires French financial institutions to publish annual reports on how they integrate environmental, social and governance criteria, including a dedicated section on biodiversity-related risks and impacts under a double-materiality approach. Reports must be filed with ADEME and the AMF within six months of year-end.

Enforcement

Mandatory

Effective date

Decree 2021-663 of 27 May 2021, published in JORF n°0122 of 28 May 2021 and in force the day after publication (Art. D. 533-16-1 CMF in force 29 May 2021); first reports due 30 June 2022 covering FY2021

Covered entities

French banks, insurers, asset managers and other financial market participants. Full disclosure obligations apply to entities and funds with assets or assets under management above EUR 500 million; lighter regime below the threshold

In-scope parent and ordering companies must establish, publish, and effectively implement a vigilance plan covering risk mapping, supplier and subcontractor assessment, mitigation actions, an alert mechanism, and a monitoring scheme addressing human rights, health and safety, and environmental harm across the group and established business relationships. Any party with standing can give formal notice and, after three months of non-compliance, seek a court injunction and damages.

Enforcement

Mandatory

Effective date

27 March 2017; first vigilance plans required for FY2017

Covered entities

French-headquartered companies that, for two consecutive years, employ at least 5,000 employees in France (parent and direct/indirect subsidiaries) or at least 10,000 employees worldwide.

The Directive amends the Unfair Commercial Practices Directive and the Consumer Rights Directive to ban generic environmental claims (such as eco-friendly or climate neutral) that are not backed by recognised excellent environmental performance, and to prohibit offset-based neutrality claims and unverified future commitments. Sustainability labels must be based on certification schemes or set by public authorities.

Enforcement

Mandatory

Effective date

Transposition deadline 27 March 2026; application from 27 September 2026

Covered entities

Traders selling goods or services to consumers in the EU internal market

The proposed Directive would require companies to substantiate voluntary environmental claims with scientific evidence and have them verified by an accredited third party before use. The file has been suspended since June 2025 following the Commission's stated intention to withdraw the proposal, though it remains formally on the legislative agenda.

Enforcement

Mandatory (if adopted)

Effective date

Not yet adopted; no application date

Covered entities

Traders making voluntary explicit environmental claims about products or services in the EU; micro-enterprise scope is contested

The rule requires that any reference an authorised firm makes to the sustainability characteristics of its products or services is consistent with those characteristics and is fair, clear and not misleading. FG24/3 sets out the FCA's expectations on substantiation, evidence and ongoing review.

Enforcement

Mandatory

Effective date

31 May 2024

Covered entities

All FCA-authorised firms making references to the sustainability characteristics of a product or service to UK clients (retail or professional)

The Green Claims Code sets six principles for environmental claims: claims must be truthful and accurate, clear and unambiguous, must not omit material information, comparisons must be fair, the full life cycle must be considered, and claims must be substantiated. Breaches are pursued under consumer protection law; the CMA can now impose civil fines of up to 10 percent of global turnover.

Enforcement

Guidance (interpreting binding consumer protection law)

Effective date

20 September 2021

Covered entities

Any business selling or promoting goods or services to UK consumers, including non-UK businesses marketing into the UK