By: William-James Kettlewell, Richard Powell, Eva-Maria Ségur-Cabanac
The EU Corporate Sustainability Due Diligence Directive (CSDDD) exempts financial institutions from due diligence to identify, mitigate and remedy potential adverse impacts, whether human rights or environmental, in their downstream “chain of activities”. In practice, however, it will be hard to escape entirely, not least as the sector will still need to adopt and implement transition plans.