𝐓𝐡𝐞 𝐧𝐞𝐯𝐞𝐫 𝐞𝐧𝐝𝐢𝐧𝐠 𝐬𝐭𝐨𝐫𝐲 𝐨𝐟 𝐜𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐞 𝐬𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐫𝐞𝐠𝐮𝐥𝐚𝐭𝐢𝐨𝐧
#omnibus to reopen #CSDDD #CSRD #Taxonomy is misguided, unnecessary and sets harmful incentives
Corporate Sustainability Regulation in the EU: In the last 5 years, all arguments had been exchanged several times, painful compromises had been found after endless debate, rules have been adopted. Firms started to analyze them, recruit experts, invest in governance systems and measures. Suppliers worldwide are setting themselves up to work together to improve the human rights and environmental situation. Now, several political and lobby actors call for a reopening of the debate, pushing for an omnibus to reopen everything on Corporate Sustainability, just over half a year after the passing of the #CSDDD.
We believe that this is bad policy, punishing responsible companies that invest in human rights and the environment. With James Sinclair Stéphane Brabant Heidi Hautala Michaela Streibelt Eckart von Malsen Céline da Graça Pires Beata F. Théo Jaekel and over 60 other BHR experts from practice and academia from many different countries, we published an open letter at Business & Human Rights Resource Centre. In essence, we argue:
1. 𝐓𝐡𝐞 𝐎𝐦𝐧𝐢𝐛𝐮𝐬 𝐜𝐫𝐞𝐚𝐭𝐞𝐬 𝐟𝐚𝐥𝐬𝐞 𝐢𝐧𝐜𝐞𝐧𝐭𝐢𝐯𝐞𝐬
Reopening the debate around these laws creates insecurity and disincentives responsible companies: The message is that when you invest early and with foresight to set yourself and your industry up for sustainable success, you will be punished, and if you just wait until the last moment and hope for a roll back, you will be rewarded. This frustrates investments made by European and their global partners and rewards laggards.
2. 𝐓𝐡𝐞 𝐎𝐦𝐧𝐢𝐛𝐮𝐬 𝐢𝐬 𝐮𝐧𝐧𝐞𝐜𝐞𝐬𝐬𝐚𝐫𝐲
While some details of sublegal standards and delegated acts #ESRS #Taxonomy might be worth aligning and streamlining more closely, reopening the #CSDDD, #CSRD, #Taxonomy is not needed for that, because amendments can be made on the sublegal level. This can and should be used to clarify how implementation of the rules can be achieved in synergetic corporate processes and without overwhelming suppliers, especially SMEs.
3. 𝐓𝐡𝐞 𝐨𝐦𝐧𝐢𝐛𝐮𝐬 𝐜𝐫𝐞𝐚𝐭𝐞𝐬 𝐩𝐨𝐥𝐢𝐭𝐢𝐜𝐚𝐥 𝐫𝐢𝐬𝐤𝐬
What credibility and seriousness can EU policy have, if legal acts negotiated for years are reopened few months after adopting them? How can we have effective governance if our leaders change their minds like teenagers change their crushes?
Some argue that protection of human rights and the environment is unnecessary #burocracy. We believe that it is essential to have a global economy based on #respect for the basic necessities and the dignity of humans.
If you want to protect the legal security for businesses to invest in human rights and environmental protection, you can find the info to sign in the attached document and in the first comment.