Regulatory Round-up: EU votes on banks’ ESG disclosures; Mexico bans solar geoengineering experiments

Members of the European Parliament’s Committee on Economic and Monetary Affairs (Econ) has voted to back changes to the EU Capital Requirements Regulation and the Capital Requirements Directive that would strengthen reporting and disclosure requirements for ESG risks. The new rules would make it compulsory for banks to adopt transitional plans to address ESG risks in the short, medium and long term in line with the EU objective of achieving climate neutrality by 2050.

The European Parliament‘s Econ has also voted for the inclusion of financial companies in the scope of the EU Corporate Sustainability Due Diligence Directive, which imposes social and environmental responsibilities throughout companies’ supply chains. 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. Industry bodies expressed concerned over the specificities of certain financial activities.