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
New: Gift this subscriber-only story to your friends and family

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.

Already a subscriber? 

Read the full story and more at $9.90/month

Get exclusive reports and insights with more than 500 subscriber-only articles every month

Unlock these benefits

  • All subscriber-only content on ST app and straitstimes.com

  • Easy access any time via ST app on 1 mobile device

  • E-paper with 2-week archive so you won't miss out on content that matters to you

Join ST's Telegram channel and get the latest breaking news delivered to you.