Sustainable finance: a better understanding of sustainability risks

This report is the result of a clinical project conducted between September 2024 and June 2025 by three students from the Sciences Po Law School, Erin Barbusse, Aranie Sriskantharajah and Gaspard Nouind, in collaboration with EthiFinance teams.

This research project, presented in the form of an academic paper, aims to analyze how the SFDR, Article 29 LEC and CSRD regulations frame the identification and management of sustainability risks by financial players. The report also aims to highlight the complementarities between these systems, in order to assess their ability to meet the growing demands of sustainable finance. In addition, concrete evidence from interviews with financial players (asset managers, asset management companies specializing in infrastructure) complements the documentary research, highlighting the benefits of these regulations and identifying sticking points in the management of sustainability-related risks with regard to these regulations.

It should be noted that this study was carried out before the adoption of the Omnibus law aimed at amending the CSRD directive and simplifying regulatory reporting obligations on sustainability risks within the European Union.