FIA has joined with three other associations in a whitepaper that highlights the importance of ensuring the proposed EU Corporate Sustainability Due Diligence Directive (CSDDD) takes a proportionate, risk-based and workable approach and that it provides a clear, practical and legally certain framework.
The associations highlight serious challenges faced by financial institutions if CSDDD obligations are applied beyond their upstream supply chain to their relationships with corporate clients or trading counterparties in their downstream value chain, and extended to downstream financial services.
“To the extent that the co-legislators decide that the scope of the Directive should include downstream business relationships, it would be essential to take account of the distinguishing features of financial institutions’ downstream value chains, and ensure a risk-based and proportionate approach,” the associations write.
The other associations who participated in the publication of the whitepaper include the Association for Financial Markets in Europe (AFME), the International Swaps and Derivatives Association (ISDA) and the European Payment Institutions Federation (EPIF).
