French Banks Push Back Against EU Corporate Sustainability Directive

The Corporate Sustainability Due Diligence Directive faces criticism from French banks over perceived administrative burden and legal risks.

The EU's Corporate Sustainability Due Diligence Directive (CS3D) mandates companies to address human rights and environmental risks across their value chains, including suppliers and subcontractors.
French banks, represented by the French Banking Federation (FBF), argue the directive imposes disproportionate administrative and legal burdens on financial institutions.
The FBF highlights potential penalties of up to 5% of global revenue for non-compliance, calling the directive's requirements 'ineffective and unworkable.'
BNP Paribas, already under scrutiny for its role in financing fossil fuel clients, suggests a more pragmatic and simplified approach to implementing the directive.
The FBF also opposes related measures, such as the Green Asset Ratio (GAR) and public disclosure of human rights complaints, citing reputational and operational risks.