FFI Position Paper on EU's Corporate Sustainability Due Diligence Directive (CSDDD)
Strengthening due diligence requirements for financial institutions in the Corporate Sustainability Due Diligence Directive (CSDDD): Fair Finance International Position Paper
On 23 February 2022, the European Commission released its proposal for a directive on Corporate Sustainability Due Diligence.
Fair Finance International (FFI) is an international civil society network of over 100 CSO partners and allies, initiated by Oxfam, that seeks to strengthen the commitment of banks and other financial institutions to social, environmental and human rights standards.
This paper focusses on the role of the financial sector in effective human rights and environmental due diligence and provides advice on how to fully integrate financial institutions within the scope and obligations of the proposed Corporate Sustainable Due Diligence directive.
Financial institutions, just as any other business regardless of their size, sector, operational context, ownership, and structure need to set up processes to identify and assess human rights and environmental risks, take appropriate action to prevent or mitigate adverse impacts, track the effectiveness of those actions, and regularly report. It is, therefore, of the utmost importance that the Corporate Sustainability Due Diligence proposal extend responsibilities for an effective mandatory human rights and environmental due diligence framework and explicitly include financial institutions that operate, or offer a product or service, within the EU.
For the purpose of strengthening the text regarding the financial sector, we encourage the European Parliament and EU Member States to take into account Fair Finance International’s reflections and recommendations.
Read the paper in full here.
Read FFI's Joint Statement with ShareAction, Global Witness, Frank Bold, Sudwind, Brot fur die Welt, WWF, Banktrack, World Benchmarking Alliance here.
For more information on FFI's Position Paper contact Bram Joanknecht; FFI International Research and Advocacy Coordinator at firstname.lastname@example.org