Dara Calleary (Mayo, Fianna Fail) | Oireachtas source

I thank the Deputy. As he knows, Ireland has been supportive of the objective of the proposed directive on corporate sustainability due diligence, which will play a significant role in promoting responsible business conduct. This is a complex proposal with far-reaching implications for companies and stakeholders concerning the prevention of adverse human rights and environment impacts. An EU-wide framework is best-placed to both support the functioning of the Single Market and influence respect for human rights and the environment beyond the EU.

While I welcome the progress made and the speed at which this has been accomplished, I had greater ambition for the proposal in a number of areas, including favouring a value chain-based approach, in recognition of the fact adverse human rights and environmental impacts can occur throughout the value chain, and a greater focus within the directive on the gender aspects of the proposal, as women can suffer more disproportionately from the consequences of adverse impacts. I raised these at the Competitiveness Council meeting on 1 December.

On the Deputy's specific query, a particular issue arose in the final text that came before Council proposing discretion be provided to member states regarding the directive's applicability to the financial sector. Ireland considers that it should apply to relevant companies across all sectors of the economy, including regulated financial undertakings. Furthermore, Ireland wants a harmonised approach on this issue to ensure policy coherence and avoid the risk of fragmentation within the general market. Accordingly, Ireland did not support the adoption of a general approach on the proposal. However, a general approach is now being adopted and the process now moves to the trilogue negotiations between the Council, the European Commission and the European Parliament.

I understand a final directive may not emerge until the latter part of 2023 following the conclusion of the trilogue process. Therefore, it is still premature to focus on implementation of the proposal, including any policy choices that might arise for member states, in advance of the Parliament's trilogue with the Council and Commission, during which further debate will no doubt be had on such matters. I assure the Deputy I will be keeping a close eye on the trilogue process.

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