Gerald Nash (Louth, Labour)
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103. To ask the Minister for Enterprise, Trade and Employment his views on a policy issue raised by constituents regarding the new corporate sustainability due diligence directive (details supplied); if he will provide an update on his plans, if any, to seek a strengthening of this directive to ensure it applies to a wider range of companies and their overseas values chains; if issues regarding climate and justice are addressed; if obligations for companies in the financial sector are strengthened; and if he will make a statement on the matter. [60789/22]

Dara Calleary (Mayo, Fianna Fail)
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A proposal for a Directive on Corporate Sustainability Due Diligence (CSDD) was published by the European Commission on 23rd February 2022. This is a ground-breaking proposal which addresses corporate behaviour and due diligence processes for the companies within its scope. The proposal focuses on establishing a system within company law and corporate governance to address adverse human rights and environmental impacts arising from companies' own operations, their subsidiaries' operations and their chain of activities.

Ireland has been supportive of the objective of the proposed Directive which will play a significant role in promoting responsible business conduct. An EU-wide framework is best placed to both support the functioning of the single market and to influence respect for human rights and the environment beyond the EU.

This is a complex proposal with far-reaching implications for companies and stakeholders. Discussions on the proposed directive have intensified in recent weeks with a range of issues under active consideration. These include those raised by the Deputy such as scope, human rights and environmental obligations, civil liability provisions relating to companies and the application of the proposal to the financial sector. Ireland has been seeking to ensure that the proposal has ambition while striking the right balance of providing effective protections for stakeholders and ensuring that the measures to be implemented by companies are clear, proportionate, and enforceable.

A General Approach on the proposal was agreed by Ministers at Competitiveness Council on 1st December 2022. I had greater ambition for the proposal in a number of areas and raised these at the Council meeting. However, these were not reflected in the agreed proposal. Trilogue negotiations will now commence between Council, the European Commission and the European Parliament. I am hopeful for future progress during these negotiations.