The Principles for Responsible Investmnet (PRI), Eurosif and Investor Alliance for Human Rights have sent an open letter to the European Commission in support of an “ambitious and effective” Corporate Sustainability Due Diligence (CSDD) directive. Undersigned by 142 signatories representing US$1.5 trillion in AUM, the letter welcomes the CSDD proposal, but outlines five recommendations to increase its level of ambition. These include broadening the scope of EU financial and non-financial companies under the directive, strengthening the link between directors’ remuneration and sustainability-related performance, consolidating requirements on transition plans, and increasing alignment with the Corporate Sustainability Reporting Directive (CSRD). The recommendations would ensure companies have to conduct due diligence on their suppliers and clients and could be liable for how products are used and disposed of. A coalition of member states, including France, Italy, Span and Portugal, are currently trying to narrow the scope of the directive to just cover corporate supply chains. The letter said: “Improvements are needed to ensure a positive impact throughout the value chain, increase coherence with the EU sustainable finance framework, and to enable investors to better manage their own exposure to sustainability issues.”
🆕 📝🌱 Today, the PRI, @Eurosif, @InvestForRights and 142 signatories representing approximately $1.5tn in AUM, release a statement of support for an ambitious and effective EU law on corporate sustainability due diligence.
— The PRI (@PRI_News) November 24, 2022