When it comes to sustainable finance, there is no bigger talking point than EU policy in 2021. Three years ago, the European Commission’s iconic Action Plan on Financing Sustainable Growth laid out 10 objectives to reduce economic risks and foster sustainable finance - most famously, the Taxonomy and sweeping disclosures regulation for investors and companies.
While most of the work so far is centred on climate change, there are quieter efforts to tighten rules on social issues such as human rights and diversity. And those efforts won’t remain quiet for much longer.
Sustainable corporate governance
One of the biggest initiatives currently being driven through Europe’s parliament is a proposal for a law requiring all businesses operating in the EU to conduct due diligence on human rights, the environment and governance across their value chains, with a view to holding firms accountable for any abuses that take place.
The Sustainable Corpo…