European Parliament committee backs sustainability due diligence for financial companies

Rules on companies’ social and environmental responsibilities across supply chains will apply to banks, institutional investors and asset managers.

Financial companies should be covered by the EU Corporate Sustainability Due Diligence Directive, agreed the European Parliament’s Committee on Economic and Monetary Affairs (Econ) on Tuesday. Environmental campaigners welcomed the vote, but called for the final text to ensure all financial institutions can be held legally responsible for any misconduct in their portfolios.