Robert Troy (Longford-Westmeath, Fianna Fail)
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The Government is committed to the implementation of the UN Guiding Principles on Business and Human Rights with the objective of promoting responsible business practice at home and abroad. Ireland has had a National Plan on Business and Human Rights in place covering the period 2017-2020. The Minister for Foreign Affairs is bringing to Government the results of a review of that Plan and this will help to inform future activity across a range of policy areas.

In relation to matters that are directly within the responsibility of my Department, there are a number of legislative initiatives either already underway or expected in the area of corporate accountability.

There is an existing 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. In April 2021, the European Commission published a significant revision of the current rules in the form of a proposal for a Corporate Sustainability Reporting Directive. Under the proposal all large companies and listed SMEs will be required annually to publish information on their performance and impact in respect of environmental, social and governance (ESG) matters, including human rights matters in accordance with mandatory EU standards. Ireland is taking an active part in negotiations at EU level on these important and positive developments.

In addition, there are proposals awaited from the European Commission in relation to Sustainable Corporate Governance (SCG). It is understood that the proposals will require companies to put in place policies and procedures to monitor the adverse effect of their operations and/or supply chain on human rights, labour rights, social rights and environmental issues.

Legislative initiatives in this area are best progressed, where possible, at EU level in recognition of the complex, international nature of many supply chains and to ensure harmonisation, promote policy coherence and avoid the risk of fragmentation within the EU single market. Cross border business activities, by their very nature, are not confined within political borders and are most effectively and impactfully addressed through multilateral cooperation and action.

Ireland is a strong advocate of human rights protections and seeks to ensure that proposals relating to corporate responsibility strike the right balance by protecting fundamental rights whilst ensuring that the measures to be implemented by companies achieve the policy goals and are not unduly onerous, particularly with regard to SMEs. Specifically in relation to the expected EU SCG proposals, my Department will carefully consider these, when available, and will engage with stakeholders to inform Ireland’s position on the legislation.