Sinéad Gibney (Dublin Rathdown, Social Democrats)
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310. To ask the Minister for Enterprise, Trade and Employment the way in which the Government’s commitments as set out in the OECD Guidelines for Multinational Enterprises to put in place an appropriate legal or regulatory framework to ensure respect for human rights throughout company value chains and therefore conduct risk-based due diligence interact with its position in relation to the EU’s Omnibus I proposal; and if he will make a statement on the matter. [23005/25]

Peter Burke (Longford-Westmeath, Fine Gael)
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The OECD Guidelines for Multinational Enterprises on Responsible Business Conduct (referred to as the Guidelines) are the most comprehensive government-backed instrument for the promotion of Responsible Business Conduct. In keeping with applicable laws and internationally recognised standards, they provide non-binding principles and standards for all areas of business conduct. Areas covered by the Guidelines include due diligence in the supply chain; disclosure, human rights; employment and industrial relations; environment; combating bribery and other forms of corruption; consumer interests; science, technology, and innovation; competition and taxation.

Governments adhering to the Guidelines are required to set up a National Contact Point (NCP) to promote the Guidelines and related Due Diligence Guidance and to address complaints made under the Guidelines (these are referred to as “specific instances”). These complaints are addressed through a non-judicial grievance mechanism which offers parties a means to resolve issues typically through mediation. The Ireland NCP is a standalone Unit in the Department of Enterprise, Trade and Employment.

The Guidelines provide voluntary recommendations for multinational enterprises to adhere to. They aim to encourage positive contributions enterprises can make to economic, environmental and social progress, and to minimise adverse impacts on matters covered by the Guidelines that may be associated with an enterprise’s operations, products and services.

To support enterprises implement the due diligence recommendations set out in the Guidelines, the OECD published its Due Diligence Guidance for Responsible Business Conduct (mneguidelines.oecd.org/due-diligence-guidance-for-responsible-business-conduct.htm) which provides practical explanations using plain language of its due diligence recommendations and associated provisions. The Guidance includes additional explanations, tips and illustrative examples of due diligence.

This Guidance also seeks to promote a common understanding among governments and stakeholders on due diligence for responsible business conduct. The UN Guiding Principles on Business and Human Rights as well as the ILO Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy also contain due diligence recommendations, and this Guidance can help enterprises implement them.

Voluntary frameworks such as the Guidelines have been instrumental in shaping mandatory initiatives over the past number of years. In many instances, mandatory initiatives refer back to the Guidelines.

The Corporate Sustainability Due Diligence Directive CSDDD currently provides that in-scope companies must, for the first time, conduct risk-based human rights and environmental due diligence and integrate due diligence into all corporate policies and risk management systems. The Directive provides that companies, when establishing their due diligence policies and measures, to protect environmental and human rights must have regard to the agreements and conventions covering these rights listed in the annex to the Directive, i.e. ‘Rights and Prohibitions included in International Human Rights Instruments’ and ‘Prohibitions and Obligations included in Environmental Instruments’.

In the context of the EU’s burden reduction agenda, the Corporate Sustainability Due Diligence Directive (CSDDD) is one of the Directives included in the European Commission’s so-called Omnibus I proposal on sustainability which is currently being discussed at EU level.

I welcome the progress being made in Commission’s Omnibus I and I look forward to early agreement of the proposals at the earliest opportunity to give business the legal certainty that it needs.