The French government has said that funds that come under the ISR label will not be permitted to invest in coal or new oil and gas projects.

French finance minister, Bruno Le Maire, has said that from the start of 2025, funds holding the responsible investing ISR label will not be permitted to invest in any companies that launch new fossil fuel exploration, exploitation or refining projects. Companies that exploit coal or “unconventional” hydrocarbons will also be banned.

There are currently around 1200 ISR labelled funds representing €7bn of equity in energy companies with 45% of these funds holding oil and gas stocks. France says the move, which will also apply to fixed income funds, is required to “make the fight against climate change a key principle of the label”.

The measures are also designed to help achieve a “progressive alignment of ISR portfolios with the [2015] Paris Agreement”, it added. A further new stipulation means ISR funds must invest at least 15% of their portfolios in companies with carbon transition plans in line with Paris.

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