'Social LobbyMap identifies financial sector lobbying around CSDDD', 13 November 2024

“Financial Sector Lobbying of the EU Corporate Sustainability Due Diligence Directive: a Social LobbyMap Analysis” focusses on the significant weakening of the scope of the CSDDD through the effective exclusion of the financial sector‘s main activities and examines the role of corporate lobbying in contributing to this outcome.

Key findings highlight: the role of the EU Council; the most influential member states in driving the Council position; the disconnect in the lobbying positions of trade associations and companies (including at times member companies of trade associations) and the lack of transparency around lobbying activity in EU legislation.

This analysis confirms that corporate lobbying aimed at weakening the ambitions of new legislative proposals is not an isolated issue in the climate space. The review clause provides an opportunity for stakeholders to engage with the future of CSDDD for the finance sector. For those aiming to do so, this report provides them with valuable insights that may help steer and strengthen that engagement.

Elissandra da Costa, Director of Social LobbyMap and Corporate Ratings at EIRIS Foundation said:

“Transparency around lobbying and influence is vital to identify power dynamics and create an environment that enables constructive, open engagement and involvement from all relevant stakeholders. The Social LobbyMap project aims to increase transparency and analysis around lobbying activities in the context of human rights and labour standards and we are delighted to present our first findings with this report.”

Richard Howitt, Stategic Advisor on Corporate Responsibility and Human Rights and Chair of the Social LobbyMap Advisory Committee said:

“This first detailed analysis of corporate lobbying on what is landmark EU legislation on business respect for human rights, exposes the deep schism between what companies say are their values and what the company’s government relations do in practice.
The new ‘Social LobbyMap’ methodology also allows us to credit several companies for doing the right thing and perhaps the biggest finding is of almost uniformly negative lobbying by business associations, despite the mixed views of their own memberships.
If investors and others use ‘Social LobbyMap’ now and in the future, corporate political engagement on social and human rights can and will be held to account.”