Vattenfall

The entity supports the introduction of a mandatory human rights and environmental due diligence law at the EU level.

"Vattenfall therefore generally welcomes setting up a harmonised set of rules and requirements on corporate social responsibility and sustainability along the supply chains in an EU legal framework following international recognised requirements as from the OECD, enabling enforcement and civil liability. A risk-based approach should be at the heart of the Directive to enhance companies efforts to mitigate risks as well creating positive impact throughout value chains.""We therefore advocate bringing the planned Directive in line with existing national and international laws, regulations and guidelines so as not to place an undue burden on companies."

The entity supports narrowing of definitions under the Omnibus package, which is aimed at reducing the ambition of the CSDDD, in order to make definitions more precise and align with CSRD. However, they also caution against compromising the effectiveness of the Directive, and emphasise the need to uphold meaningful due diligence without any further delays .

"We encourage co-legislators to ensure swift negotiations that provide companies with clarity and predictability, as extended ambiguity causes uncertainty among value chain partners and undermines the level playing field for first movers.""As business leaders and investors committed to Europe’s fossil-free future, we support reducing administrative complexity while emphasising the importance of a coherent, predictable regulatory framework designed on the basis of impact assessments and full adherence to the Better Regulation principles is critical for achieving climate neutrality by 2050, ensuring EU competitiveness and enhancing energy security.""As first movers, we rely on a robust legal framework to maintain a competitive edge, uphold human rights and environmental standards across our value chains, and ensure long-term business resilience. However, we urge co-legislators to limit the simplification of the CS3D by narrowing definitions and enhancing harmonisation, aligned with international guidelines, without compromising the risk-based approach essential for meaningful due diligence and long-term business resilience.""At the same time, we urge co-legislators to focus on simplifying the CS3D by narrowing definitions and implementing harmonisation measures aligned with international guidelines. However, this should not come at the expense of the risk-based approach, which enables companies to undertake meaningful due diligence. Such due diligence is vital for upholding the EU’s climate ambitions and human rights, both of which are foundational to long-term business resilience and the maintenance of a level playing field. As a first mover, we rely on robust legal framework to build a strong business case to sustain our competitive edge, while upholding human rights and environmental standards across our value chains."

Signatories call the EU to not reopen the Directive for renegotiation.

‘The undersigned companies and industry associations continue to support the goals of the European Union’s sustainability due diligence … We write now to urge at this critical juncture that you focus on delivering the much-needed practical implementation of these rules. Investment and competitiveness are founded on policy certainty and legal predictability. The announcement that the European Commission will bring forward an “omnibus” initiative that could include revisiting existing legislation risks undermining both of these. … Therefore, we urge the European Commission to publicly clarify that this “omnibus approach,” if embarked upon, will not allow already agreed and adopted legal texts to be reopened for renegotiation. We are particularly concerned about the potential reopening of the Corporate Sustainability Due Diligence Directive (CSDDD), especially as the CSDDD does not introduce any overlapping reporting requirements’

The statement calls for preserving the core of the EU sustainable finance framework, including corporate due diligence, considering that regulatory simplification can be achieved without compromising the substance of the new rules.

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 signed entities support the introduction of a mandatory human rights and environmental due diligence law at the EU level and call on their governments to vote in favour of the CSDDD.

"As Nordic businesses, we recognize that there is a critical need for business to play their part in addressing the urgent human rights and environmental challenges we face globally.""With the Corporate Sustainability Due Diligence Directive (CSDDD), the EU has a unique opportunity to harness the transformative power of the UN Guiding Principles on Business and Human Rights. This will further strengthen the relationship between business and society and the realization of sustainable development. A mandatory human rights and environmental due diligence law that is applicable throughout the EU would serve as an international benchmark for advancing responsible business conduct. It would also create a level playing field across the EU to drive much needed action""We call upon our governments to continue to play a leadership role by supporting the CSDD in the final stages of the legislative process, including by voting in favour of the initiative at the upcoming Council meeting."

The entity calls for the inclusion of companies operating in, not just headquartered in, the EU.

"Furthermore, we support … the expansion to companies doing business in the EU, not just EU-headquartered companies, as this will help to positively impact human rights, as well as level the playing field."

The entity supports enforcement of the CSDDD.

"Vattenfall therefore generally welcomes setting up a harmonised set of rules and requirements on corporate social responsibility and sustainability along the supply chains in an EU legal framework following international recognised requirements as from the OECD, enabling enforcement and civil liability."

The entity supports requiring companies to provide a complaints procedure that is aligned with the UNGP effectiveness criteria.

"Complaints procedure: Complaints procedure should be better aligned with the effectiveness criteria of the UNGPs and sufficiently linked to other processes in the proposal, such as the processes for identifying impacts and actions to address them."

The entity supports creating a legal requirement for companies to establish a complaint and notification mechanism.

"We welcome proposed measures enhancing harmonisation of the implementation of the CS3D across Member States: Operating cross-borders, Vattenfall welcomes the proposal to extend the scope of maximum harmonisation to include due diligence support at the group level and the duty to establish a complaint and notification mechanism (Article 4)."

The entity supports the inclusion of civil liability.

"Vattenfall therefore generally welcomes setting up a harmonised set of rules and requirements on corporate social responsibility and sustainability along the supply chains in an EU legal framework following international recognised requirements as from the OECD, enabling enforcement and civil liability."

The entity supports the inclusion of upstream activities and suppliers, but calls to limit the scope of downstream activities included in the scope of value chain.

"We recognise the importance of the value chain, the envisaged definition and requirements, however, cannot possibly be met in practice. Commitments should focus on relationships along the supply chain, using a risk-based approach as envisaged by the UN Guiding Principles on Business and Human Rights (UNGP). It should be clarified that this excludes customers, at least from the perspective of an energy company (from the perspective of a company that is in the middle of the value chain and does not only have end points as customers). A sound and pragmatic definition of supply chains should be used."

The statement calls for not limiting due diligence to tier-1 suppliers.

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 is supportive of company disengagement as a last resort, and asks for more clarity and standardisation around terminating contracts.

"The cancellation of a contract or the extraordinary termination of business relationships as required in Art. 7 par. 5 should be the measure of last resort. In order to be effective, the criteria for this measure should be more clearly defined, standardised between the Member States and accordingly anchored in international regulations. Next to the practical difficulties, the extraordinary termination of business relations can be counterproductive with regard to the objective of improving the sustainability performance along the supply chain. ... It is therefore very important to find the right balance between risk on the one hand and the company's influence in the supply chain on the other. Therefore, cooperation with partners in the supply chain and the global definition and enforcement of due diligence obligations are of crucial importance in order to achieve a long-term and systematic impact."

The entity supports the Omnibus' proposed definition of stakeholders, which is narrower than the previously approved definition in the CSDDD.

"We welcome the spirit of the omnibus in simplifying and alleviating the administrative burden to enable companies to conduct meaningful due diligence. In that regard, we welcome the proposed definition of stakeholders (Article 13), as it provides clarity on who to engage with during the due diligence process across our value chains, as long as it includes stakeholders that are most relevant to our human rights and environmental issues."