ECB President: Reducing CSRD scope would ‘weaken’ European financial system in the face of climate change
Christine Lagarde urges MEPs to strike a balance between necessary disclosures and proportionate requirements.
European Central Bank (ECB) President Christine Lagarde has warned that reducing the scope of the Corporate Sustainability Reporting Directive (CSRD) would weaken the European financial system and hinder its ability to protect itself against climate impacts.
In a letter addressed to members of the European Parliament, Lagarde explains that measures to make the Eurosystem more resilient to climate shocks – such as the ‘climate factor’ introduced in July to assess collateral in bank lending – depend on the availability of reliable and comparable sustainability information.
