Summary
The position paper by Cefic addresses the European Commission’s Corporate Sustainability Due Diligence Proposal, which aims to streamline and harmonise due diligence requirements across sectors. Cefic acknowledges the Proposal’s intent but raises concerns about legal uncertainties, increased ESG litigation risks, and the broad definitions within the document. The paper urges refining key elements for clarity and proportionality, emphasising the importance of consistency with existing legislation and international standards.
Cefic recommendations:
- Revised Definitions: Key concepts are overly broad, necessitating specific revisions to ensure legal certainty and intended objectives are met.
- Consolidated Compliance: Corporate groups with multiple companies meeting thresholds should demonstrate compliance in a consolidated manner to promote high compliance rates and resource efficiency.
- Proportionate Sanctions: Sanctions for non-compliance should be proportionate to the severity of the non-compliance and not solely based on a company’s turnover, ensuring fairness and justice.