Eight major companies mount fight back against EU omnibus
Primark, Unilever and Nestle among firms calling for consistency and clarity, not dilution
Primark, Unilever and Nestle are among eight companies to come out in support of the EU’s current sustainability agenda, amid a growing push to weaken it.
The trio penned a letter to EU leaders on Friday, alongside logistics company DP World, lighting giant Signify, cosmetics brand L’Occitane and chocolate makers Ferrero and Mars, asking Europe to stay the course.
Their letter addressed the European Commission’s plan to amend the Corporate Sustainability Due Diligence Directive (CS3D), Corporate Sustainability Reporting Directive (CSRD) and Taxonomy Regulation to make them more business-friendly.
“The undersigned companies and industry associations continue to support the goals of the European Union’s sustainability due diligence and company reporting rules,” they told Commission president, Ursula von der Leyen, and the six commissioners who will be responsible for sustainable finance and the clean industrial deal over the next five years.
“These initiatives have the potential to drive long-term resilience and value for European businesses in support of competitive advantage. To achieve these goals, we need consistency, clarity and confidence in their application.
“We write now to urge at this critical juncture that you focus on delivering the much-needed practical implementation of these rules.”
Lobbying and political campaigning against the three laws is becoming increasingly aggressive as the Commission prepares to table its proposed revisions next month.
Earlier this week, the European Roundtable on Industry (ERT) requested more than 10 pages-worth of changes to CS3D, CSRD and the Taxonomy, including major reductions in their scope and ambition, and called for other green laws to be added to the reduction package.
Unilever and Nestle, who are both represented on ERT, distanced themselves from the trade association’s demands via a disclaimer in the statement. But today’s letter more clearly spells out how they feel about the EU’s intention to change the laws using an omnibus proposal.
It cited concerns over “the potential for others to use this process to call for the legislation to be reopened for political renegotiation”.
Parts of the legislation are already in force, it noted, and companies have already invested significant resources into aligning with the rules.
The companies urged the Commission to confirm that no already-adopted legal texts would be redesigned.
They say they are particularly worried about CS3D, which is the most vulnerable of the three laws because it is the only one that seeks to hold companies accountable for their environmental and social impacts, and because it hasn’t been fully developed yet.
The letter notes that when the due diligence law was originally negotiated, it was done so on the basis that it should rely on existing disclosure rules, rather than introducing additional ones, and therefore it shouldn’t be included in efforts to reduce the reporting burden.
“The most practical step the European Commission can take to support future competitiveness is to focus on developing the clear and practical guidance needed to support businesses in implementing the CS3D,” the companies said, calling for the overdue public consultation to be launched swiftly.
“We are certain that with clear guidance and support from the European Commission, implementation of the existing rules will be both practical and workable for companies, working people, consumers, and the European economy.”
Other signatories to the letter were Canadian investment house NEI and civil society groups the Ethical Trading Initiative and the Global Network Initiative.