As the discussions around the proposed EU Directive on Corporate Sustainability Due Diligence continue, ESBG, together with 26 other business associations, addressed policy makers with a number of recommendations and concerns.
The statement focused on key messages that large parts of the international business sector identified as essential to creating a feasible and coherent set of rules. The associations highlighted that carrying out the required due diligence checks across the entire value chain is neither manageable nor realistic, and recommended implementing a truly risk-based approach instead.
The obligation to exercise due diligence must be proportionate to the size and means of the company in question. Furthermore, the parties stressed that the list of conventions in the Annex to the Directive is too extensive and generates legal uncertainty, considering that these norms are only applicable to states and not to private legal entities.
The statement also made clear that directors should not be held liable for the company’s compliance with the rules and that legal liability provisions need to be balanced. Regarding the overall design of the Directive, the associations called for an option to organise the due diligence measures at group level and warned of the risks that a fragmented European legal landscape would bring.
In general, the business actors asked for clear guidance ahead of the new rules’ entry into force, and reiterated that more emphasis should be put on multi-stakeholder initiatives. The European Parliament is expected to vote on its position in May 2023, before negotiations with the Council and the Commission on the final text will start.
JOINT BUSINESS STATEMENT
related
February 21, 2023
ESBG responded to the ESMA consultation about the use of ESG terms in funds’ names
On 17 February, ESBG submitted its response to the ESMA consultation about the use of ESG terms in funds’ names
February 3, 2023
Advocating on the EU deforestation regulation
What lessons can be learnt from a French diplomat from the XIX century?
January 11, 2023
ESBG responds to the ESAs call for evidence on greenwashing
Therefore, in the interest of customers, banks, saving banks and issuers of financial products, ESBG
October 5, 2022
Joint letter to Commissioner McGuinness on the EFRAG consultation regarding its first set of draft ESRSs
On 27 September, the ESBG, together with the European Banking Federation (EBF), the European Association of Co-operative Banks (EACB), Insurance Europe, Accountancy Europe, Business Europe and…
September 9, 2022
ESBG response to the EFRAG consultation on its first set of draft ESRSs calls to ensure levelled global playing field
In its response to the European Financial Reporting Advisory Group (EFRAG) public consultation on the first set of Draft EU Sustainability Reporting Standards (ESRSs), the European Savings and Retail…
September 7, 2022
EU Taxonomy minimum safeguards: Criteria for the application of external checks should be further defined
The European Savings and Retail Banking Group submitted its final response to the Platform for Sustainable Finance (PSF) consultation on its draft report on minimum safeguards (MS). In its response,…
August 3, 2022
International Sustainability Standards Board consultation on Sustainability Disclosures
The International Sustainability Standards Board (ISSB) has been established at COP26 with the purpose of developing a comprehensive global baseline of sustainability disclosures for the capital…
July 8, 2022
World savings and retail banks call for harmonised taxonomies on sustainable finance
The World Savings and Retail Banking Institute (WSBI) called today on policymakers for the harmonisation of taxonomies on sustainable finance. At the end of the 26th WSBI World Congress, the…
July 7, 2022
World savings and retail banks moving forward on sustainability
World Savings and Retail Banking Institute (WSBI)'s members get together for the first time since 2018 at the 26th World Congress, in Paris. Under the title 'Locally Rooted, Globally responsible' the…
May 27, 2022
ESBG calls for more feasible rules on the new corporate sustainability due diligence
In its response to the European Commission call for feedback on the proposal for a Directive on Corporate Sustainability Due Diligence, the European Savings and Retail Banking Group (ESBG) suggests…