Bankers dodge full impact of Europe’s toughest ESG law to date

According to the compromise announced on Thursday, the financial sector will be “temporarily excluded from the scope of the directive

US Treasury Secretary Janet Yellen has also warned of the potential “negative, unintended consequences” facing US firms due to the scope of CSDDD

The finance industry will be shielded from the full scope of the European Union’s most consequential piece of ESG legislation to date, as the bloc settles on a compromise to help it get the bill over the finish line.

Under the Corporate Sustainability Due Diligence Directive, large companies face civil liability for environmental and human rights violations in their value chains. Whether to include banks, insurers and asset managers had been a major hurdle in ...