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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 article kicks off and introduces 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.

As a response to the Covid-19 crisis the EU has agreed on a historic recovery package of 750€ Billion, which includes funds for EU member states. In order to apply for financial support, EU member states need to provide Recovery and Resilience Plans. They may take into consideration country-specific recommendations, developed annually to address macroeconomic imbalance issues among EU Member States as identified within the European Semester.

To this date, environmental due diligence has hardly been integrated into legislations and it is not yet as concrete as UN Guiding Principles on Business and Human Rights are in regard to human rights concerning responsibilities of corporations. Human rights due diligence captures environmental destruction when it is directly linked to human rights violation like a toxic spillage, which directly causes death or health issues.

In the last year, the German government held intense and controversial discussions on the introduction and design of national due diligence regulation. However, environmental aspects of corporate due diligence were given little attention. By contrast, the debate at European level is already much more progressive. On January 27, the Legal Affairs Committee of the European Parliament explicitly recommended the inclusion of independent environmental due diligence requirements in a future European due diligence legislation. 

The Coronavirus pandemic has delayed the collection of evidence in the trial between the Peruvian farmer Saúl Luciano Lliuya and the German utility RWE at the Upper State Court in Hamm (Germany). Nevertheless, a new scientific study is providing credence to the legal claim: a prestigious team of researchers has used climate models to demonstrate that the risk of glacial lake flooding affecting the city of Huaraz is almost entirely due to anthropogenic climate change.

In addition to amplifying extreme weather events, climate change also causes or intensifies slow-onset processes such as sea-level rise, desertification, biodiversity loss or permafrost thaw. Both types of climate change impacts cause loss and damage, impede the enjoyment of human rights and can be drivers for human mobility. In contrast to extreme weather events, dealing with loss and damage caused by slow-onset processes in the context of climate change is still neglected, both at the national and international level.