Organisations across Europe have congratulated the European Commission for announcing plans to legislate on sustainable corporate governance, urging for a stronger legal framework on companies' impact on human rights and the environment.
ShareAction is part of a group of 45 organisations which has written to EU Justice Commissioner Reynders to welcome these developments. However, the open letter calls for strong EU rules which:
- Require all companies, including the financial sector, to do proper checks (due diligence) that their business is not causing or contributing the degradation of human rights or the environment.
- Embed sustainability into the duties of those at the top of the company, including setting targets, to ensure directors move away from short-termism and towards greater accountability.
Philipp Woelk, EU policy assistant at ShareAction, says: "As the world begins to mend from a global pandemic, strong company law in Europe can act as a buffer against future shocks and help protect people and the environment in case it happens again. We applaud the Commission for not neglecting the fundamental role corporate governance and directors’ duties play in reaching the objectives of the sustainable finance agenda and the European Green Deal. However, it's time to move beyond mere disclosure and usher in legislation that mitigates the harmful impacts on workers and the climate issuing from the corporate world."
Notes for editors:
- For more information, please contact beau.osullivan@shareaction.org
