Alice-Mary Higgins (Independent) | Oireachtas source

I thank the Cathaoirleach for selecting the matter and the Minister of State for attending. It has been reported, as the Minister will be aware, that in the negotiations on the long and eagerly-awaited new EU corporate sustainability due diligence directive Ireland has taken a position to seek the exclusion of asset managers and institutional investors and certain products associated with asset managers and institutional investors from the provisions of the proposed directive. The Minister of State will be aware that more than 50 civil society organisations, including the Irish Coalition for Business and Human Rights, the Irish Congress of Trade Unions, ICTU, Friends of the Earth, Christian Aid, Action Aid, Oxfam and many others have written to the Minister of State to express their concern that the directive has been weakened over the course of the Council negotiations.

The exclusion of asset managers and institutional investors would severely weaken the directive. It effectively takes the money out of it. Capital is not an abstract thing. It is movement through our economy and society. It has real impacts. From 2010 to 2021 private equity firms alone in their investments were responsible for approximately €1.1 trillion into the energy sector, overwhelmingly directed into fossil fuels. Ireland, given its own recent past, should in fact be a champion for the need for responsible regulation of the financial sector.By seeking and supporting an exemption of this kind, Ireland risks severely limiting the effectiveness of this important EU directive in respect of climate targets, environmental protection, ethics and human rights. It also risks undermining Ireland's international credibility on finance and human rights. At a time we are a member of the UN Security Council, the reputational risk should not be underestimated.

I urge the Minister of State to do the right thing at the Competitiveness Council meeting this week. I would like him to update the House on the position that Ireland will take on the question of the value chain and ensuring that we examine downstream as well as upstream impacts. For example, when assessing environmental damage, the impact of manufacturing pesticides as well as the impact of their use should be examined. There must also be a gender-proofing of the directive, as the issue of gender is key. Let us ensure that we are not contributing to a weakening.