Sustainable Commercial Banking in European Union Law: A Renewed Mandate for Commercial Banks?

In recent years, the concept of sustainability has gained growing relevance in European Union (EU) policy discussions and legal/regulatory reforms in the banking field. This chapter analyzes selected key EU policy actions, legal reforms, and proposals for reform with an impact on the commercial banks’ sustainability reporting duties and on their obligations to take stock of sustainability risks and impacts, with a focus on the following questions: Are these policy actions and reforms effective in fostering sustainability? Do they mitigate agency problems between commercial banks and stakeholders affected by or with an interest in sustainability? To what extent are they leading to a redefinition of the corporate objective of commercial banks and of the duties of their directors?