Regulators have grown more worried about companies engaging in greenwashing, or making exaggerated climate-friendly claims to attract investor cash.
Listed or unlisted companies with over 250 staff and turnover of 40 million euros will have to disclose environmental, social and governance risks and opportunities, and the impact of their activities on the environment and people. "From now on, having a clean human rights record will be just as important as having a clean balance sheet," said Pascal Durand, who led negotiations for parliament.
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