Sustainable finance, fund managers will use more estimates and less point data

The ESG strategies of European asset managers are entering a phase of profound redefinition. The revision of the Community regulatory framework, from the Sustainable finance disclosure regulation (Sfdr) to the Corporate Sustainability Reporting Directive (Csrd) for companies, up to the debate on the 'Omnibus' simplification launched by the European Commission, is forcing operators to rethink their operations.

A challenge that, according to Thibaud Clisson, climate change lead at Bnp Paribas Asset Management, represents an evolution of the system. "For us, as global investors, it means that in some cases we will have to rely more on estimates and data provided by external providers, especially when investing in unlisted or smaller companies". Thus, the weight of the ESG data ecosystem increases: 'It becomes even more important that data providers are properly regulated and that the quality of information is high and comparable. Focusing on a smaller and more relevant number of indicators is a step in the right direction. It can make the system more efficient and improve the comparability of data between companies,' Clisson notes.

On the investor side, the discussion on the revision of the Sfdr is proceeding in parallel, with the changes announced by Brussels at the end of 2025 aimed at shorter and more understandable disclosure documents for investors. In addition, the EU Commission has introduced a system of voluntary categorisation of financial products, based on only three categories, drawn up on the basis of a stakeholder discussion and inspired by already widespread market practices. 'The current consultation does not change the spirit of the regulation,' Clisson comments. 'I do not see a change of direction and we are not moving our funds to Article 6 because of the regulatory changes. Our strategy remains focused and committed to sustainability'.

An opportunity for investors, even in a geopolitical context marked by tensions and sometimes more cautious political agendas on climate than in the recent past. 'The fact that in some areas of the world the political agenda is less ambitious does not mean that the energy transition has stopped. We have to distinguish between political noise and real market dynamics,' explains the climate change lead of Bnp Paribas AM. 'In the United States, solar remains the cheapest and fastest energy to install. In China, electric vehicle penetration continues to grow rapidly. Industrial and technological dynamics are strong and are not being halted by a less favourable political cycle'.

Looking to the near future, Clisson identifies three main challenges for asset managers' ESG strategies: