Ecopreneur.eu

The entity indicates that: ‘Reducing unnecessary complexity is crucial, but the scope, ambition, and core principles of these laws must remain untouched. Only in this way can we ensure a sustainable and resilient economy in which European companies will flourish. Weakening these directives would not only undermine competitiveness but also harm the EU’s global credibility in sustainable finance and policy leadership’.

The Business for a Better Tomorrow coalition reminds you that the regulations in question—… the Corporate Sustainability Due Diligence Directive (CS3D), … are essential pillars of the Green Deal. These regulations provide businesses with a harmonized framework that supports their sustainable transformation and long-term competitiveness. …The successful implementation of these measures will be instrumental in creating a fairer, more attractive business environment, while simultaneously solidifying the EU’s position as a global leader in sustainability. In this context, we stress that revisiting certain provisions of these texts should not result in a reduction of their ambition or in delaying their implementation. The focus of any adjustments must be on simplification from a practical point of view, enabling businesses to achieve sustainability goals without imposing an undue burden. These improvements should focus on simplification rather than deregulation of laws, … Simplification must streamline processes, not dilute objectives.

Ecopreneur, ‘strongly opposes the Omnibus “Simplification” Package proposed by the European Commission last week, warning that it undermines sustainable business, weakens investment security, and damages the EU’s leadership in sustainable finance. The Omnibus proposals would severely weaken … the Corporate Sustainability Due Diligence Directive (CSDDD), … “We call on the European Parliament and Council to focus the Omnibus on simplification instead of deregulation, and urge the Commission to deliver genuine simplifications swiftly through delegated and implementing acts”’.

Signatories, ‘are issuing this joint statement to emphasise the importance of preserving the core of the EU sustainable finance framework. Rules on … corporate due diligence are a key foundation for achieving the EU’s economic and sustainability goals. … In the context of the Omnibus I simplification initiative, we call attention to the investors, banks, other financial institutions and companies across our economy that support preserving the core elements of the … Corporate Sustainability Due Diligence Directive (CSDDD). … CSRD/ESRS and CSDDD are essential for achieving the EU’s wider sustainability, growth and competitiveness ambitions. … The signatories of this statement consider that regulatory simplification can be achieved without compromising on the substance of sustainability rules or their significant benefits for businesses across the EU’.

The entity indicates that: ‘The process introducing an Omnibus also creates uncertainty for companies, says Arthur ten Wolde, director of the European Sustainable Business Federation Ecopreneur. ... ‘Companies want predictability. The question is whether it is smart to adjust legislation, which also requires Parliament’s approval. The very possibility of adjustments leads to unpredictability.” Ecopreneur.eu will closely monitor the developments concerning this idea as to prevent watering down of the existing laws’.

"Today, a coalition of stores, businesses, and business federations express their support for a regulation that would require companies to be accountable for the impact they have on the environment and human rights throughout the value chain. It has been a lengthy process, and European negotiations are at a crucial stage. The Member States of the European Union hold the keys and must decide on their final green light for the political agreement that has been meticulously negotiated in favor of the Corporate Sustainability Due Diligence Directive (CSDDD). As progressive businesses, we hope that the process initiated can achieve its goal, and we wish to explicitly express our support for this important initiative that will add to the creation of the necessary ‘playing field’ towards sustainable value chains."

"… Additionally, new laws on corporate sustainability reporting and due diligence promote greater climate ambition and transparency on environmental action, and create a level playing field by also applying to foreign companies active in the EU. Implementing these laws requires time, resources and effort by businesses, as well as trust that investments undertaken to get ready for the application of these laws are not in vain. Deregulation, whether through lowering environmental or social standards, reneging on international commitments, or reducing the EU’s climate ambition, threatens the stable and predictable legal framework that we depend on. We urge the European Commission to support businesses in successfully implementing existing and upcoming environmental standards — by prioritising smart implementation ...

The statement includes that following: '“The CSDDD is substantially aligned with the international standards on Responsible Business Conduct. This makes it credible and its implementation manageable.” “At the same time, it is ground-breaking as it makes due diligence mandatory for companies that are in scope across the EU.” “We support the CSDDD and call on European decision-makers to do so as well.'

The entity indicates that: ‘Ecopreneur.eu welcomes the proposal for mandatory human rights and environmental due diligence as a long-overdue step forward, including the large number of support measures for companies. ... However, the proposal still falls short in many ways. ... The regulation should be brought in line with the UN Guiding Principles on Business and Human Rights (UNGPs) and OECD guidelines and extend to all business relations’. It adds: ‘due diligence also should extend from human rights and environmental risks to governance risks, with a focus on anti-bribery and corruption’. Finally: ‘Ecopreneur.eu is not in favour of a light regime: while sectoral collaboration enables companies to jointly tackle risks, improve investigate their value chains and create new business opportunities, it does not nearly offer the same quality guarantee as legislation’.

"Avoiding blanket exemptions of sectors or company sizes which can create unfair competition, harm consumer trust and further complicate supply chains. Given the proportionality principle, EU legislation often already provides longer timeframes and lighter processes for SMEs."

The entity indicates that: ‘The legislation should apply to all businesses regardless of size, across the full value chain, and inform all stages of the due diligence process. ... all companies should be subject to the due diligence obligations, regardless of size, including SMEs’. It adds: ‘due diligence requirements need to be enforced at the level of individual companies and include companies participating in sectoral collaboration’. However, ‘We do ... want to take proportionality into account: the means through which a company meets the standard will vary according to its size and the severity of its impacts, among other factors. The administrative burden of due diligence should be minimised, especially for SMEs’.

It states that, 'the most salient ... risks and impacts often lie deeper in supply chains. A risk-based approach to due diligence is helpful to companies as this allows them to focus on where the real risks are, building on their knowledge of their own supply chains. By limiting due diligence to tier 1 suppliers, the Omnibus proposal may unintentionally promote the kind of “box ticking” compliance exercises that it intends to reduce'.

The entity indicates that: ‘It should be conducted on the entire value chain, including both direct and indirect business relationships, both upstream (e.g., with producers of raw material inputs such as minerals, water, or cotton) and downstream (e.g., with users of products such as cameras and algorithms). ... the Directive should extend to all business relations, including spot markets’.