ARTICLE23 May 2022

Two pager on Corporate Sustainability Due Diligence 

On the 23rd of February, the EU Commission proposed a framework on binding provisions for due diligence together with new rules on corporate governance. 

Photo: Mostphotos

The Confederation of Swedish Enterprise welcomes that the Commission is aiming for a proposal that sets a European framework for this approach, replacing the existing patchwork of national rules that have multiplied over the last few years. 

However, we do continue to have concerns that the design of the proposal is unclear and may lead companies to abandoning, or refraining from engaging in, complex markets.
We find it unfortunate that the Commission proposal still contains controversial provisions such as those on directors’ remuneration relating to corporate governance. This is a domain that we believe is, and should remain, a national competence.

In our two pager we highlight the points where we are most concerned and where we would want to see changes.

In summary we want to see:

  • A harmonised due diligence framework 
  • A framework that applies to supply chains rather than value chains
  • Rules with a workable, proportionate, and risk-based approach where legal liability is limited to what companies can reasonably control
  • It is essential that due diligence at group level is allowed to ensure effective enforcement
  • We want to see a more precise and demarcated list of the responsibilities that can reasonably be placed
Contact our EU Office

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Contact our EU Office

Address

Rue du Luxembourg 3
BE-1000 Bruxelles
Subscribe to Business Policy Brief
Contact our EU Office

Address

Rue du Luxembourg 3
BE-1000 Bruxelles
Subscribe to Business Policy Brief
Contact our EU Office

Address

Rue du Luxembourg 3
BE-1000 Bruxelles
Subscribe to Business Policy Brief
Publisher and editor-in-chief Anna Dalqvist