Skip to content
  • MyNewMarkets.com
  • Claims Journal
  • Insurance Journal TV
  • Academy of Insurance
  • Carrier Management
Insurance Journal - Property Casualty Industry News

Featured Stories

  • 2024 P/C Combined Ratio Best in More Than a Decade
  • Judge Backs 17% State Farm Rate Hike in California
  • Articles
  • Jobs
  • Markets

Current Magazine

current magazine
  • Read Online
  • Subscribe
  • Login
  • Front Page
    • National
    • International
    • Most Popular
    • Magazine
    • Forums
    • Blogs
    • Videos/Podcasts
    • Newsletters
  • News
    • Most Popular
    • National
    • International
    • East
    • Midwest
    • South Central
    • Southeast
    • West
  • Magazines
  • Research
  • Directories
  • Jobs
  • Features
    • Events
    • Forums
    • Market Directories
    • Quotes
    • Polls
    • Rankings & Awards
    • Insurance Giving Back
  • Subscribe

EU Vote on Human Rights ‘Due Diligence’ Looms for Financial Services Firms

By Huw Jones | April 6, 2023
Email This Subscribe to Newsletter
  • Article

Financial services companies would be required to take action if their clients were failing to protect human rights and the environment, a preliminary deal due to be voted on later this month by a panel of European Union lawmakers showed.

The EU’s executive European Commission in 2022 proposed the Corporate Sustainability Due Diligence Directive or CSDDD, a set of measures whose reach has split lawmakers and EU states, and raised concerns in the United States about their extraterritorial nature.

EU states and the European Parliament have the final say, and the inclusion of financial services has become one of the draft measure’s most controversial aspects.

Last December, EU states reached a deal among themselves, deciding to give themselves the option of excluding financial services from the rules.

But parliament’s lead legal affairs committee is due to vote on the draft measure on April 24, and its members have reached a tentative cross-party compromise that includes financial services, setting up a clash.

Banks and insurers would have to make due-diligence checks on their customers, but not terminate a loan or other services if it meant the customer would become bankrupt, the compromise showed.

It appears to give asset managers some leeway, saying they should “take appropriate measures” to “induce their investee” to bring actual adverse impacts to human rights or the enviroment to an end.

“Where the adverse impact cannot be brought to an end, Member states shall ensure that institutional investors and asset managers induce their investee companies to minimize the extent of such an impact,” the lawmaker compromise says.

Asset managers should engage with companies, use their voting rights to end harmful impacts, it added.

After this month’s vote, lawmakers would meet with EU states to thrash out a final version that becomes law.

(Reporting by Huw Jones; editing by Angus MacSwan)

Copyright 2025 Reuters. Click for restrictions.

Topics Europe

Was this article valuable?

Thank you! Please tell us what we can do to improve this article.

Thank you! % of people found this article valuable. Please tell us what you liked about it.

Here are more articles you may enjoy.

Brett Favre’s Defamation Suit Against State Auditor Can Move Forward, Court Says
State Farm VP Apologizes to Homeowner While Allstate Gets Grilled at Senate Hearing
Space War: Marsh Sues Willis Over Aviation Insurance Hires Soliciting Clients
Despite Backlash From Trump, DEI Hasn’t Disappeared at US Companies

Written By Huw Jones

More From Author

The most important insurance news,
in your inbox every business day.

Get the insurance industry's trusted newsletter

Email This Subscribe to Newsletter
  • Categories: International & Reinsurance NewsTopics: asset managers, due diligence, environmental social and governance (ESG) criteria, EU financial services, human rights
  • Have a hot lead? Email us at newsdesk@insurancejournal.com
More News
EEOC_SealAustin Bar to Pay $42K Over Pregnancy Discrimination Lawsuit
EU to Propose Removing Business Barriers to Enhance Competitiveness Amid US Tariffs
Former Progressive CEO Renwick, 69, Dies
Hack of Contractor Was at Root of Massive Federal Data Breach
More News Features

Read This Next

  • EU Vote on Human Rights 'Due Diligence' Looms for Financial Services Firms
  • Lloyd's Promotes Chief of Markets Tiernan to CEO, Succeeding Neal
  • Risk Management Considerations When Having Family Fun
  • New York School District Sues Two Insurers Over Coverage for Child Victim Claims
  • Cybercrime Up Again

Insurance Jobs

  • Senior Business Analyst (Personal Insurance) - Hartford, CT
  • Senior Director, Health & Benefits, Client Service Team - Cleveland, OH
  • Auto Blend Claim Representative II - Charlotte, NC
  • Health & Benefits Associate - Houston, TX
  • SDET/ Senior Automation Engineer - Remote, IL
MyNewMarkets
  • 5 Ways to Prepare for Healthcare Liability Changes in 2025
  • What's Next For Workers' Comp?
  • Soft D&O Market May Come to an End as Risk Complexities Rise
  • Exclusions: Active Assailant Coverage - Oh My!
  • 10 Things to Know About Insuring Boats & Marinas
Claims Journal
  • State Farm Still Wants a 30% Rate Increase in California
  • No NOAA Large-Disaster Data Could Hurt Insurer Grasp of Secondary Perils, Says AM Best
  • Marks & Spencer Says Cyberattack to Cost $403 Million
  • APCIA Says Record Shows 'Minimal Complaints' on Hurricane Milton, Helene Claims
  • Mitchell: Claims Frequency of Battery Electric Vehicles up as Sales Face Tariff Threat
Academy of Insurance education
  • May 22 Commercial Property: Five Bombs and How to Defuse Them
  • June 5 E&O and Hard Markets: How Trying to Keep a Client Might Cause Trouble
  • June 12 Rating AI Tools: Balancing Functionality and Security
  • June 19 Can You Hear Me? Yes, I Am Listening!

Insurance News

  • News by Region
  • News by Topic
  • Yesterday

Site Search

Features

  • Insurance Markets Directory
  • Forums
  • A.M. Best Company Ratings
  • Industry Events
  • Agencies For Sale
  • Newswire
  • Insurance Jobs
  • Rankings & Awards

Connect with us

  • Email Newsletters
  • Magazine Subscriptions
  • For Your Website
  • RSS Feeds
  • Twitter
  • Facebook
  • LinkedIn
  • Do Not Sell My Info

Insurance Journal

  • Submit News
  • Advertise
  • Subscribe
  • Reprints
  • Link to Us
  • Contact Us

Wells Media Group Network

  • Insurance Journal
  • MyNewMarkets.com
  • Claims Journal
  • Insurance Journal TV
  • Academy of Insurance
  • Carrier Management
© 2025 by Wells Media Group, Inc. Privacy Policy | Terms & Conditions | Site Map