Non-Financial Data in Sustainable Finance: Reflecting the Evolution and Maturity of the Sector

In a new article published on the Caisse des Dépôts blog as part of the series "Sustainable Finance: From Yesterday to Tomorrow – Looking Back and Looking Ahead", Thibaud Barreau, Director of Labs at the Institute Louis Bachelier, examines the evolution of non-financial data and its growing role in shaping European sustainable finance.

Since the Paris Agreement was adopted in 2015, ESG (Environmental, Social and Governance) data have gradually become a central component of financial analysis. Initially driven by voluntary initiatives and labels such as the PRI, CDP, Greenfin and ISR, they have progressively evolved into essential tools for assessing climate-related risks, guiding investment decisions and enhancing transparency across financial markets.

In his analysis, Thibaud Barreau outlines the three major phases that have characterized this evolution: an initial phase driven by sustainability labels, a second phase shaped by the strengthening of European regulations through the CSRD, the EU Taxonomy and the SFDR, and a third phase marked by the emergence of double materiality and a more comprehensive consideration of environmental and social impacts.

The article also highlights the new challenges facing financial institutions. The growing use of impact data, climate scenarios, geospatial information and alternative data sources such as satellite observations is fundamentally transforming risk assessment and investment analysis practices.

Finally, the author emphasizes the increasing attention being paid to both physical and transition climate risks, including stranded assets, legal and reputational risks related to greenwashing, and exposure to natural disasters. This evolution reinforces the need for increasingly robust, forward-looking and comparable data to support the environmental and social transition.

👉 Read the full article by Thibaud Barreau on the Caisse des Dépôts blog : https://www.caissedesdepots.fr/eclairage/blog/articles/les-donnees-extra-financieres-dans-la-finance-durable-reflet-des-evolutions-et-de-la

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