Simon Coveney (Cork South Central, Fine Gael) | Oireachtas source

First, a directive has already been agreed around the corporate sustainability reporting directive, CSRD. That places a more extensive requirement on larger companies that employ more than 500 people in terms of the timelines around when it has to be implemented. Effectively, however, we are moving towards a situation where financial and sustainability reporting are moving into the same space in respect of obligations on companies. We have a lead-in time to work with companies to ensure this is done. I think it is the right thing to do. This is going to be a requirement for every business across the EU. It is not just an Irish issue. Over time, it will also be a competitiveness issue in respect of businesses being able to show clearly their reporting on the sustainability of their businesses in respect of where and how they source materials and how they treat their workers, etc. I do not think, therefore, that we should see this directive as a threat or a cost or an extra bureaucratic problem for businesses. Instead, I think we need to work with businesses to try to streamline how this is implemented. As I said, we have quite a lead-in time to enable us to do this in respect of applying the directive here and working with companies. We have several years to undertake this process. That directive has already been agreed and the process now is concerned with its ratification and implementation.

In terms of what has been raised around the CSDDD, this is very much linked with the responsibility of businesses more generally in terms of how we pursue that agenda. I have been involved in several international debates on this matter. From my perspective, of course we must watch carefully that we do not ask of businesses things that would make the running of those businesses much more difficult. I see how businesses are run, however, and the consistency with our trade policy in Ireland, which is very much focused on ensuring we are trading in a way that supports human rights and sustainability and takes account of our climate obligations. This will very much be part of running a business in the future.

The challenge for my Department, then, is how we can help businesses to adapt to these new realities, as opposed to ignoring them. We must ensure we put public money and, indeed, policy, supports and mentoring in place to help businesses to do that in a cost-effective way to help them to maintain their cost competitiveness. We must also be a country that develops an international reputation as a place where business is done in a sustainable and fair manner, and in a way that is consistent with international law and human rights. This is very much going to be part of Ireland's future reputation, as well as our competitiveness proposition, which will not only be about our cost base.