Peter Burke (Longford-Westmeath, Fine Gael)

I thank Deputy Gibney for her very important question. Ireland supports the simplification and burden reduction agenda at EU level. Specifically, in relation to the Omnibus on sustainability, the proposals are intended to address disproportionate burdens on businesses, in particular on SMEs, whilst retaining key aspects in relation to corporate responsibility. In relation to the necessity to conduct a risk-based approach, the Commission’s proposal retains the requirement for in-scope companies to conduct risk-based human rights and environmental due diligence of their own operations, those of their subsidiaries and their direct business partners. If plausible information suggests the existence or possibility of adverse impacts arising from their operations or those of their indirect business partners, the company will be required to conduct an in-depth assessment.

If that assessment confirms the existence of an adverse impact, further due diligence will need to be carried out. The proposed amendment in relation to civil liability is to remove the EU-wide civil liability regime in favour of a national civil liability regime. My position, which has been indicated at EU level, is that to avoid a civil liability regime which would vary across EU Member States, Ireland sees the benefits of retaining the EU-wide civil liability regime as provided for and published in the directive.

In relation to the climate action proposal, it seeks to simplify the provisions on transition plans by aligning with the provisions of the corporate sustainability reporting directive. In-scope companies will be required to include implementation actions, planned and taken, in their climate transition plans. The design of climate plans must include targets related to climate change and companies will have to report on achieving those targets on an annual basis. The Deputy may wish to note that under the climate action plan, the enterprise sector is committing to a 35% reduction in emissions by 2030.

Irish enterprises are taking climate action seriously. For example, a recently commissioned survey of more than 300 SMEs showed that 83% of businesses consider sustainability important in their daily operations. As for stakeholder engagement, in-scope companies will be required to engage with their workers and representatives, including trade unions, and individuals and communities.

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