Seán Haughey (Dublin Bay North, Fianna Fail)
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129. To ask the Minister for Enterprise, Trade and Employment if Ireland is supportive of the EU Commission's legislative initiative on mandatory and human rights due diligence for EU companies in 2021; and if he will make a statement on the matter. [12522/21]

Leo Varadkar (Dublin West, Fine Gael)
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I understand the Deputy may be referring to the EU Commission’s forthcoming proposal on sustainable corporate governance expected in Summer 2021. As outlined by the EU Commission this may include measures to require companies to take actions to address their adverse impacts on social and environmental matters including human rights by way of a due diligence duty.

Certainly, the matters signalled are of great importance and any EU legislative proposals will be examined carefully and subject to consultation with stakeholders to inform Ireland’s position. The proposals shall be considered from the perspective of Ireland’s support for human rights, their feasibility for companies and their directors having particular regard to SMEs, and the effectiveness of the proposals in meeting their objectives.

In parallel, there is already an obligation on certain large companies in the EU to publish annually non-financial information in respect of their social and environmental impact including on matters such as human rights and climate change or explain where they do not. The EU is reviewing the Non-Financial Reporting Directive (2014/95/EU) with the objective of improving the way this information is made publicly available including the question of developing an EU standard to enhance these non-financial disclosures. A legislative proposal is expected in April 2021.

I look forward to the receiving the EU Commission’s proposals and to Ireland taking an active part in progressing these important and positive developments.