Finance Watch reacts to European Parliament plenary vote on CSDDD

Today, the European Parliament voted on the Corporate Sustainability Due Diligence Directive (CSDDD) during the plenary sitting in Brussels. The directive is an opportunity to ensure companies are held responsible for violations to human rights and international environmental standards.

Finance Watch, the pan-European NGO advocating to make finance serve society, welcomes the Parliament’s vote to preserve the core of the JURI compromise, despite an article on  the responsibility of directors to oversee due diligence being rejected. The outcome of the vote is positive given there was significant resistance to elements of the JURI compromise text, notably the inclusion of financial services and investment activities, the alignment of remuneration with transition plans and civil liability for damages companies cause or contribute to.

Vincent Vandeloise, Senior Research & Advocacy Officer at Finance Watch said:

“We believe that the final text is a fair compromise and an important step to strengthen the responsibility and sustainability of companies. The inclusion of financial services, including investment activities, is key to tackling human rights violations and adverse environmental impacts. Adequate sector-specific guidance for the value chain of financial services is still needed and some concessions have been made in favour of industry, but the European Parliament’s position is a good basis on which to kick off discussions with the Council and the Commission.”

Finance Watch published a reaction to the JURI compromise text in April.  Ahead of the trilogue negotiations, Finance Watch calls on policymakers to support the Parliament’s position as compromises in favour of the Council text could seriously undermine the effect of CSDDD and create an unlevel playing field for financial institutions within the EU.

To arrange an interview with Vincent Vandeloise, Senior Research & Advocacy Officer at Finance Watch, please contact Alison Burns at alison.burns@finance-watch.org or call on +32 (0)471577233

About Finance Watch

Finance Watch is an independently funded public interest association dedicated to making finance work for the good of society. Its mission is to strengthen the voice of society in the reform of financial regulation by conducting advocacy and presenting public interest arguments to lawmakers and the public. Finance Watch’s members include consumer groups, housing associations, trade unions, NGOs, financial experts, academics and other civil society groups that collectively represent a large number of European citizens. Finance Watch’s founding principles state that finance is essential for society in bringing capital to productive use in a transparent and sustainable manner, but that the legitimate pursuit of private interests by the financial industry should not be conducted to the detriment of society.

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