Sustainability due diligence – what it means for companies and how EU sustainability standards can help

August 2021 Issue

This year will be key for future climate policy and especially for sustainable finance in Germany and Europe. Sustainable finance plays a crucial role in improving climate protection and sustainable growth. To this end, Germanwatch joined forces with the Alliance for Corporate Transparency in order to push towards greater corporate responsibility and disclosure requirements to meet the EU and Paris climate targets.

This is the fifth article of our briefing series “Full Disclosure: Monthly Briefing on EU Corporate Transparency Regulation”, in which we aim to shed light on the need for and benefits of forward-looking reporting requirements in a changing EU regulatory environment.

About this issue:

Due diligence affects all companies, as it enables to properly assess relevant risks and impacts. While investors and customers show growing awareness of companies' impacts along the value chain, many companies still provide limited detail. In the sixth article of our briefing series “Full Disclosure” we examine how corporate due diligence legislation relates to sustainable finance and what questions a legislative proposal needs to answer to avoid greenwashing and support comparable due diligence.

July Issue: (Financial) Opportunities of European sustainability reporting rules for small businesses

June Issue: Climate transition plans: How EU standards can help companies to focus on the right data

May Issue: The EU Sustainable Finance April package and how EU sustainability reporting standards fit in

April Issue: What needs to be reported on sustainability-related governance?

March Issue: Reform of the EU Non-financial Reporting Directive: A Push Towards Future-proof Reporting Obligations