Finance should be excluded from sustainability law, says some EU states By Reuters
Economy 15 minutes ago (Nov 10, 2022 18:11)
© Reuters. FILE PHOTO: European Union flags fly near the European Commission headquarters in Brussels, Belgium, October 4, 2019. REUTERS/Yves Herman
By Huw Jones
LONDON (Reuters) – A European Union draft law forcing large companies to check if their suppliers use slave or child labour is facing calls from several member states to shield or even fully exclude the financial sector, EU documents seen by Reuters showed.
The European Commission, the EU’s executive body, proposed the Corporate Sustainability Due Diligence directive (CSDDD) in February, which would also oblige boards of EU based firms to ensure that their business model and strategy align with targets limiting global warning.
EU states and the European Parliament have the final say, but the strength of unease among major member states means some changes are likely.
Luxembourg, Ireland and Germany have indicated they want to exclude asset managers and institutional investors from scope, with France and Italy going further and calling for the entire financial sector to be left out, an EU diplomat familiar with the negotiations said.
Ireland said in a submission it could not signal its agreement to including financial undertakings, and called for an assessment from the EU’s securities, insurance and banking watchdogs on how finance would be impacted if included.
Applying the proposal would cause significant administrative and cost burdens on occupational pension schemes in Ireland, the Irish submission said.
An impact assessment should also look at overlaps between the proposal and existing EU financial rules, the Irish submission added.
“In order to come up with a CSDDD framework that is fit-for-purpose and takes into account the specificities of the financial sector, it is necessary to exclude investment activities from the scope of the directive,” Luxembourg said in its submission.
The Netherlands, however, has said that excluding the finance would the wrong signal, the EU diplomat said.
The current proposal calls for EU states to designate an authority to impose sanctions for non-compliance.
EU president Czech Republic said in a note to EU states that its proposed compromises should “disperse concerns of some member states as regards the regulation of financial undertakings”.
Finance should be excluded from sustainability law, says some EU states
WASHINGTON (Reuters) – European Union Ambassador Stavros Lambrinidis on Thursday said he was very hopeful that negotiations with the United States could result in elimination of…
LONDON (Reuters) – The Bank of England said on Thursday that from Nov. 29 it would start to sell back to the market some of the 19 billion pounds ($22 billion) of long-dated and…
By Saqib Iqbal Ahmed NEW YORK (Reuters) – Investors are stampeding away from the dollar, as softer-than-expected U.S. consumer price data raises hopes that the Federal Reserve may…
Terms And Conditions
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.