Global scope of EU's greenwashing crackdown spooks Wall Street

Bankers complain about extraterritorial extent of the new directive on sustainability reporting

Banks are hoping to get a decent hearing on claims that the most recent draft is unclear. PHOTO: AFP
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FINANCIAL TIMES - Global warming is, by definition, a global problem. But the worldwide scope of the European Union's latest climate change effort - designed to end the practice of describing things as greener than they really are - is provoking alarm on Wall Street.

The Corporate Sustainability Reporting Directive (CSRD), agreed in principle with little fanfare in June and due to take effect from next June, compels all "large" companies that operate in the EU or have listed securities in the bloc to produce extensive new reports on the effects of their business, and of their parent companies, on the environment.

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