20 January 2023

EuropeanIssuers joint statement on Corporate Sustainability Due Diligence Directive

The statement, co-signed by 27 European associations in the business industry, calls for realism, proportionality, and workability of the EU due diligence framework to enable and guide businesses in taking necessary steps towards more sustainable supply chains.

EuropeanIssuers issued a joint statement expressing the views of the business community on the Proposal for a Corporate Sustainability Due Diligence Directive. The statement, co-signed by 27 European associations in the business industry, calls for realism, proportionality, and workability of the EU due diligence framework to enable and guide businesses in taking necessary steps towards more sustainable supply chains.

The joint statement intends to intervene in the current phase of the legislative process, by putting forward several recommendations and concerns to enhance the benefits of the corporate sustainability due diligence proposal.

The business community calls, first and foremost, for a full harmonisation of the due diligence framework across the EU, to avoid fragmentation of the Single Market and to ensure a level playing field.

EuropeanIssuers, together with the other business associations, reiterates the need for the legislation to acknowledge the possibility of organising due diligence at group level, as CSR and due diligence policies are usually adopted at the parent company level.

In addition, we believe that focusing on all aspects within the whole value chain is neither manageable nor realistic: companies should be able to prioritise the most salient risks and have the freedom to take appropriate actions to cease, prevent or mitigate identified adverse impacts in accordance with a risk-based approach.

The statement also highlights the need for a better balancing of legal liability provisions, ensuring that due diligence is an obligation of means, and that companies cannot be made liable for damages they didn’t cause or directly contributed to.

Furthermore, we believe that regulating directors’ duties is unnecessary to reach the objectives of the proposal and does not belong in the due diligence framework.

Finally, the statement suggests the adoption of a clear guidance to help companies comply with national authorities to enforce legislation, including sectoral guidance, and a specific emphasis on multi-stakeholder and industry initiatives should be put in place to support companies’ due diligence efforts.

EuropeanIssuers remains committed to the 

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