Debate: Corporate due diligence and corporate accountability
Date: MONDAY, 8 MARCH 2021
Speaker: Didier Reynders
Language: FR

La Commission se félicite du travail et du rapport de la commission des affaires juridiques ainsi que de l’intérêt du Parlement européen sur ces questions. Je souhaite en particulier féliciter et remercier la rapporteure Lara Wolters ainsi que les rapporteurs fictifs sur ce dossier avec lesquels j’ai eu l’occasion d’échanger à plusieurs reprises. Nous partageons l’ambition d’une action législative horizontale au niveau européen afin de concrètement mettre en œuvre les engagements de l’Union en faveur d’une transition vers une économie plus juste et plus durable. We see a clear momentum across Europe towards a legislative proposal, a sustainable corporate governance, and the Commission will deliver on this. The objective of the Commission is to foster a sustainable, fair and competitive EU economy as we recover from the current crisis. This initiative will be an important contribution to achieving those goals. The private and public sector should both contribute to achieve this common goal. In addition, it is important that we respect our values, both within and outside the Union. We want to incentivise, outside of Europe, good practices that protect the environment in line with our international commitments and our efforts on climate change and environmental protection. Similarly, EU companies should make all reasonable efforts to make sure that practices against human rights, labour and social rights that are not tolerated within the Union do not take place in their supply chain. We want effective action: an enforcement mechanism to ensure that forced labour does not find a place in the value chain of EU companies. Many EU companies are seriously committed to preventing adverse sustainability risks and impacts throughout their value chains, thereby contributing to addressing key societal challenges. Let me insist on this. Many companies are already showing us the way, and this is a field where we want to work with companies and to support them, notably by putting in place a strong level playing field at EU level. Ample economic evidence shows that sustainable companies, those properly integrating the interests of their stakeholders – including workers – into their decision-making and paying attention to their environmental and social impact, often perform better, are more productive and more resilient. This should be Europe’s competitive edge. Sustainable corporate governance is part of the overall transformation towards a more sustainable and inclusive economy, and it can contribute to companies’ resilience and performance in the long term. Companies should carry out sustainability due diligence proportionate to their capabilities, to mitigate social, human rights and environmental harm in their business operations and supply chains. This means that those facing bigger risks would need to do more, as due diligence is a proportionate tool. Harmonised EU legislation would avoid risk of fragmentation of the internal market. As you know, such fragmentation increases the cost for businesses and investors. Due diligence rules under EU law would also bring legal certainty and as I said, a level playing field in the whole European Union. It is something many businesses and citizens are calling for throughout the EU. The Commission will present its legislative proposal on sustainable corporate governance later this year. We envisage a holistic approach where a corporate due diligence obligation is underpinned by directors’ duty. We will also consider the complementarity work carried out by this Parliament on the report prepared last year by Mr Pascal Durand. Specific attention will be given to the costs and burdens for companies, including indirect costs and, in particular, for SMEs. I can assure you that I will be very attentive to this issue. A possible range of solutions is being considered as part of the impact assessment the Commission is currently conducting. This could go from limitations of the scope of application according to the size and riskiness of the sector or companies, to adapting certain requirements to the size of the company, in line with the proportionality principle. We are also looking into possible targeted support, such as guidance, tools, funding or technological solutions for traceability. As supported by Parliament in your draft report, we are looking to base the future of the due diligence obligation on existing international guidelines and commitments stemming from international agreements. As regards liability, we are assessing this issue as part of the preparatory work for our initiative, having in mind international standards and the need to ensure an effective enforcement mechanism in line with our objectives. Let me also assure you that the Commission will ensure alignment between this proposal and a review of the Non-Financial Reporting Directive, in order to avoid duplication of reporting obligations for companies. We will also ensure coordination and coherence with other complementary initiatives, such as the one on deforestation, in particular when it comes to the definition of ‘deforestation-free’. To conclude, the Commission is currently in the process of finalising the results of the public consultation we conducted on this initiative, which closed on 8 February. We received not less than 470 000 contributions. An impact assessment is currently being prepared, and I thank you very much for your support for this initiative, for your attention today, and I am, of course, now looking forward to our debate.