Written answers

Thursday, 9 December 2021

Department of Enterprise, Trade and Employment

Corporate Governance

Photo of Aodhán Ó RíordáinAodhán Ó Ríordáin (Dublin Bay North, Labour)
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136. To ask the Minister for Enterprise, Trade and Employment if his Department has drafted documentation or communication to influence the European Union due diligence proposal currently being developed by the European Commission; his views on whether his Department and Ireland will work to ensure a high common standard is set for the European Union supply chains with the objective that the comparable standards of human rights and environmental protection to those expected within the European Union are extended to global suppliers; and if he will make a statement on the matter. [60577/21]

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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I understand that the Deputy may be referring to the European Commission’s forthcoming proposals on Sustainable Corporate Governance (SCG). Details are awaited but 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, if at all 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.

With regard to the Sustainable Corporate Governance initiative, to date there has been some preliminary engagement at officials level via the EU Company Law Expert Group. My Department will carefully consider the proposals, when available, and will engage with stakeholders to inform Ireland’s position on the legislation and the approach to future negotiations.

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