On 24 January 2023, every of the European Parliament’s commerce committee and financial affairs committee reached agreed positions on the monetary points of the draft Company Sustainability Due Diligence Directive (the “Draft Directive”). The agreed positions mark a departure from the European Fee’s and the Council of the European Union’s earlier positions on the Draft Directive (which you’ll be able to examine here and here), for the reason that committees have agreed that:
- the scope of the Draft Directive must be widened to incorporate the monetary companies sector and smaller firms; and
- the monetary companies sector shouldn’t be designated as “excessive threat”, which means these inside the sector would now not be mandated to report on their sustainability engagement insurance policies.
The European Parliament’s authorized affairs committee will take into account the commerce committee’s and financial affairs committee’s agreed positions when reviewing the Draft Directive. As soon as the authorized affairs committee has reviewed and opined on the Draft Directive, the EU Parliament will vote and decide its preliminary negotiation place on the Draft Directive (in accordance with normal EU legislative course of).
