Banks may escape Europe’s toughest ESG regulation so far

The finance industry has lobbied hard against being included in the scope of the directive, arguing that such a wide-reaching rule is reasonable to consider for manufacturers, but not for banks, asset managers and insurers. — Bloomberg

BRUSSELS: Banks, asset managers and other financial firms have won a reprieve from Europe’s most consequential environmental, social and governance (ESG) regulation to date, as a wave of intense industry lobbying pays off.

Spain, which holds the European Union’s (EU) rotating presidency, has proposed that financial firms be excluded from the initial rollout of the Corporate Sustainability Due Diligence Directive (CSDDD), according to a Nov 9 draft proposal seen by Bloomberg. The proposal still requires the approval of member states and lawmakers.