More than 30 investor and human rights organizations are pressing EU policymakers to preserve the Corporate Sustainability Due Diligence Directive (CSDDD) “review clause”, which keeps the door open to applying the law to banks and other financial institutions in the future.

In a joint letter dated Sept. 1, spearheaded by ShareAction and backed by WWF, Reclaim Finance, Oxfam, and others, the groups called the clause “modest in scope but highly significant in purpose.” They warned that removing it would let high-risk investments continue fueling fossil fuel expansion, deforestation, and human rights abuses without accountability.

The clause requires the European Commission to publish a July 2026 report assessing whether to extend due diligence requirements to financial services. However, the Commission’s February 2025 Omnibus proposal recommends deleting it. Critics say this would strip away the EU’s “second chance” to bring finance under the directive’s scope.

The European Central Bank has also urged policymakers to retain the review clause, emphasizing that financial institutions should not be exempt from sustainability obligations.

The proposal is now with the European Parliament’s Legal Affairs Committee, which is set to vote on Oct. 13, before moving to a full Parliament vote later in the month

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