The Member States have indeed made it to adopt a common position of the Council on the #DueDiligence Directive (#CSDDD). All in all, more light than shadow. Yet: There is finance! More about that in the thread 👇
RT @EU2022_CZ: #COMPET | 👏 Ministers agreed a common position on the #DueDiligence directive.
The @EUCouncil is ready for negotiations with the @europarl_en on reducing the negative impact of large companies on environment and human rights.
Mo…
🐦🔗: https://n.respublicae.eu/repasi/status/1598392617431011328
1⃣ Scope (Article 2):
Who is out? Alternative investment funds and UCITS (through a reference to Article 2(12) SFDR);
Who is MAYBE in? All the others! The inclusion of financial services is optional, according to a last-minute compromise: MS may decide to apply the CSDDD! 2/13
🐦🔗: https://n.respublicae.eu/repasi/status/1598392623546392577
The mandatory carve-out of some financial products with a reference to the SFDR is also called by some as the #BlackRock carve-out: Honi soit qui mal y pense (@gruffat_claude). For me it's clear: Reporting duties (aka #SFDR) cannot replace duties to act (aka #CSDDD). 3/13
🐦🔗: https://n.respublicae.eu/repasi/status/1598392626226626564
2⃣ IF financial service operators are within the scope of the #CSDDD, they are also part of the 'chain of activities' (formerly known as the 'value chain') (Article 3). 4/13
🐦🔗: https://n.respublicae.eu/repasi/status/1598392630496428039
4⃣ With regard to the running business relations, there is no duty to terminate or suspend temporarily the provision of financial services in the event of adverse impacts on human rights or the environment, but mere monitoring obligations ... (Articles 7 and 8). 6/13
🐦🔗: https://n.respublicae.eu/repasi/status/1598392641443561481
5⃣ Provided that financial service operators are within the scope (optional!), they are subject to civil liability. No special rules or exemptions here for finance. 7/13
🐦🔗: https://n.respublicae.eu/repasi/status/1598392644199235586
6⃣ Finally, the Commission gets a special evaluation tasks: Seven years after the entry into force of the #CSDDD, the Commission may reflect on whether financial undertakings should be included into the scope, by default! (Article 29) 8/13
🐦🔗: https://n.respublicae.eu/repasi/status/1598392649827893248
In the Economic and Monetary Affairs Committee (ECON) I am the rapporteur of an opinion on the #CSDDD with the special focus on financial services. My own thoughts can found in my draft report and in this explanatory thread: 9/13
RT @repasi: Tomorrow the negotiations on my opinion for @EP_Economics (ECON) on the Corporate Sustainability Due Diligence Directive (#CSDDD) will start. Time for a thread on my draft report (https://www.europarl.europa.eu/doceo/document/…
🐦🔗: https://n.respublicae.eu/repasi/status/1598392652118069250
I remain convinced: All financial services belong into the scope of the #CSDDD. The particularities related to financial services have to be taken into account when refining the due diligence obligations and the civil liability. That's what the Council now sees differently. 10/13
🐦🔗: https://n.respublicae.eu/repasi/status/1598392655498575872
I have only little understanding for the 'optional' solution of the Council, according to which financial services are only in the scope IF the Member States decide so. This runs counter the very idea of the #CSDDD: namely, to create a level-playing field in the internal market.
🐦🔗: https://n.respublicae.eu/repasi/status/1598392659172683776
The German government has played a rather positive role when it comes to financial services. @EURACTIV wrote about the background of this last-minute compromise. Anybody can form his/her opinion on this basis. 12/13 https://www.euractiv.com/section/economy-jobs/news/inclusion-of-finance-sector-in-eu-due-diligence-law-on-the-brink/
🐦🔗: https://n.respublicae.eu/repasi/status/1598392661429587968
The European Parliament is still in the middle of finding its own position. Financial services play also here a crucial role. Stay tuned! /END
🐦🔗: https://n.respublicae.eu/repasi/status/1598392664482725888
@TheProgressives, @SPDEuropa, @pvdaeuropa, @larawoltersEU, @KlaasEller, @ioanniskamp, @FairFinanceInt, @MarijaBartl, @Suedwind_eV, @ArcuriAa
🐦🔗: https://n.respublicae.eu/repasi/status/1598392666760581120
3⃣ Due Diligence obligations for financial services are also in the Council text (as in the Commission proposal) limited to the pre-contractual phase (Article 6). Upon the conclusion of a contract: no more duties. This does not reflect reality. 5/13
🐦🔗: https://n.respublicae.eu/repasi/status/1598392635689177088