Bankers dodge full impact of ESG law

BRUSSELS: The finance industry will be shielded from the full scope of the European Union’s (EU) most consequential piece of environmental, social and governance (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 (CSDDD), 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 arriving at a deal.