Gerald Nash (Louth, Labour)
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193. To ask the Minister for Enterprise, Trade and Employment the position that Ireland took at the 1 December 2022 meeting of the EU Competitiveness Council on COM/2022/71, the proposal for a directive on corporate sustainability due diligence and amending EU Directive No. 2019/1937; and if he will make a statement on the matter. [61441/22]

Dara Calleary (Mayo, Fianna Fail)
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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 had intensified in recent weeks with a range of issues under active consideration. Ireland had been seeking to ensure that the proposal had 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. 

I had greater ambition for the proposal in a number of areas and raised these at the Council meeting. My preference was for the retention of a broader value chain-based approach in recognition of the fact that adverse human rights and environmental impacts can occur throughout the value chain. I would also have wished for a greater focus on the gender aspects of the proposal as women can suffer more disproportionately from the consequences of adverse impacts. 

A particular issue arose in the final text of the proposal that came before Council as discretion was being provided to Member States regarding applicability to the financial sector. Ireland considers that the proposal should apply to relevant companies across all sectors of the economy including regulated financial undertakings. Furthermore, Ireland supports a harmonised approach on this issue, which promotes policy coherence and avoids the risk of fragmentation within the single market. Accordingly, Ireland abstained on the adoption of a general approach on the proposal.