During yesterday’s fourth trilogue negotiations between Member States and the European Parliament on the Corporate Sustainability Due Diligence Directive (CSDDD), Parliament’s negotiation team, under the lead MEP Lara Wolters, refused to succumb to Council’s proposition to exclude the finance sector from the scope of application of the planned directive.

NFU General Secretary, Carin Hallerström said:

We, the Nordic Financial Unions, sincerely appreciate Parliament’s refusal to accept a quick deal and abandon key achievements of its report and negotiation position.

These main achievements include:

• The directive is clearly horizontal and includes the finance sector into its scope to a reasonable degree.
• Building on the Commission’s proposals, the Parliament is more ambitious in its scope and aligns CSRD and CSDDD. All companies with more than 250 employees and a turnover of at least €40 million will be covered. The Commission’s proposal covered companies with 500 employees and a turnover of €150 million.
• The Parliament calls for companies to make their value chains climate-neutral by 2050, and they should submit climate transition plans in line with the goals of the Paris Agreement, including concrete targets and measures that will lead their value chains to climate neutrality.

The financial sector could ensure the implementation of these new due diligence obligations – the Nordic financial sector shows the way, as many responsible business due diligence obligations are already mandatory in the Nordic financial and insurance sectors.

Comments Carin Hallerström the European Parliament’s approach.

The rejection of the Spanish Presidency’s proposal to exclude the finance sector intensifies the pressure for an agreement in December, before the Belgian Presidency and the 2024 European elections.