Oireachtas Joint and Select Committees

Wednesday, 7 December 2022

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

EU Legislative Proposal on Corporate Sustainability and Due Diligence: Discussion

Mr. Conor Linehan:

The Deputy expressed concerns about the possibility of having a level playing field and how the directive might play out. All of the issues that we are discussing will feature in contractual negotiations. For large companies, and right the way through, the value chain is recognised and there are concepts of direct and indirect business partners. At various points in the draft directive, it is recognised that there will be contractual negotiations. It is proposed that the Commission will come up with model clauses to recognise these issues and where it is appropriate to not displace but at least share responsibility for meeting the obligations as between the large companies and right down. We can expect the Commission to come forward with model clauses.

Those which are principally caught by this measure are the large companies, which really have the capability or intend to have the capability to deal with all of this. They cannot unfairly avoid their obligations simply through unfair contract terms or anything like that because that would be seen as being a breach of the core obligations of the directive.