We welcome that the Commission is aiming for a proposal that sets a European framework for this approach, replacing the existing patchwork of national rules that have multiplied over the last few years.
Virtually all larger companies in Sweden are already pursuing an active sustainability policy, and are working to improve human rights and reduce the environmental impact of their operations and supply chains.
We welcome that the Commission is aiming for a proposal that sets a European framework for this approach, replacing the existing patchwork of national rules that have multiplied over the last few years.
However, we do continue to have concerns that the design of the proposal may lead companies to abandoning, or refraining from engaging in, complex markets. We also worry that compliance costs will soar without any tangible positive impact on sustainability and that companies may be held accountable for third-party actions over which they have little or no control. Here, we would like to highlight the fact that despite the proposal containing exceptions for SMEs, in reality – as suppliers to, or customers of, larger companies - many of them will fall within its scope anyway.
Finally, we find it unfortunate that the Commission proposal still contains controversial provisions such as those on directors’ remuneration relating to corporate governance. This is a domain that we believe is, and should remain, a national competence.
We look forward to taking the time to study this proposal in greater depth, and to contributing constructively to the development of an effective and workable European due diligence framework.