To provide legal certainty to business and citizens, the Commission has proposed a directive laying down rules on corporate due diligence obligations. According to the new rules, companies will be required to prevent, end or mitigate the negative impact that their activities have on human rights and the environment, such as on child labour, slavery, pollution or biodiversity loss. Opening statements by Lara WOLTERS (S&D, NL), Rapporteur; Raphaël GLUCKSMANN (S&D, FR), AFET; Barry ANDREWS (Renew, IE), INTA; René REPASI (S&D, DE), ECON; Samira RAFAELA (Renew, NL), EMPL; Tiemo WÖLKEN (S&D, DE), ENVI; by Didier REYNDERS, European Commissioner for Justice and by Ilan DE BASSO (S&D, SE), DEVE and Deirdre CLUNE (EPP, IE), IMCO. This transcription is a result of an automatic process. Please check against delivery.

Brussels

corporate social responsibility (T)

statement

debate

plenary session

CLUNE, Deirdre (EPP, IE)

REYNDERS, Didier (BE, EC)

WÖLKEN, Tiemo (S&D, DE)

GLUCKSMANN, Raphaël (S&D, FR)

RAFAELA, Samira (Renew, NL)

BASSO, Alessandra (ID, IT)

WOLTERS, Lara (S&D, NL)

ANDREWS, Barry (Renew, IE)

REPASI, René

Corporate Sustainability Due Diligence: opening statements by Lara WOLTERS; Raphaël GLUCKSMANN; Barry ANDREWS; René REPASI; Samira RAFAELA; Tiemo WÖLKEN; by Didier REYNDERS, EC for Justice; and by Ilan DE BASSO and and Deirdre CLUNE

SOUNDBITE (English), Lara WOLTERS (S&amp;D, NL), Rapporteur, Thank you very much, Chair. We have just commemorated the horrors of Rana Plaza, the hundreds of victims, many of whom had not wanted to go into the building but were threatened and made to pay with their lives. A disaster that tragically could have been avoided.

SOUNDBITE (English), Lara WOLTERS (S&D, NL), Rapporteur, Rana Plaza is not the only disaster linked to corporate greed or the only disaster linked to companies misbehaving and turning a blind eye. Sheira Katun died last December and in her lifetime never had justice for her son who died in a burning clothing factory in Bangladesh. Fire escapes were blocked. The factory in question made jeans for a known German brand.

SOUNDBITE (English), Lara WOLTERS (S&D, NL), Rapporteur, Or Rosita Tiquari and Veronica Minimbur are still fighting for justice after their homes were destroyed by a palm oil company in West Papua, financed with European money. Injustice, impunity, that makes your stomach turn. These are examples that show the need for rules on business because we are talking about daily occurrences of injuries, pollution, corruption, on the other side of the world, as well as in Europe.

SOUNDBITE (English), Lara WOLTERS (S&D, NL), Rapporteur, And tragically, nobody is ever to blame. Everybody points to someone else. Companies say it wasn't them, it was their supplier. They didn't know. Low prices are very welcome. Responsibility is not.

SOUNDBITE (English), Lara WOLTERS (S&D, NL), Rapporteur, But we're not talking about all companies. Let's be very clear about that. Many companies and sectors have taken action voluntarily, especially after Rana Plaza, and yet it hasn't been enough for true change. Action has been too patchy and there's often too little justice for victims.

SOUNDBITE (English), Lara WOLTERS (S&D, NL), Rapporteur, So, for victims, the case for this law is very, very clear. But for businesses, this law is of vital importance also. Why? Because they need certainty about what to do, as well as the certainty that their competitors are doing the same. As for consumers, they in themselves cannot change the world, even if it were possible for people to check every company and every label that won't make enough of a difference.

SOUNDBITE (English), Lara WOLTERS (S&D, NL), Rapporteur, And that's why we're making a law on what responsible business means. What we have before us is a political agreement that I am very proud of. It was painstakingly negotiated over three years and it tries to take into account every difficulty that was raised by everyone who will be affected by this law, workers and companies alike.

SOUNDBITE (English), Lara WOLTERS (S&D, NL), Rapporteur, It has always been my aim to negotiate a position with cross-party support in this House, which is proportionate and workable for business and effective and accessible for victims. Why? Because this legislation is too for us not to deliver. This is about what kind of Europe we want to live in and what we as Europeans value.

SOUNDBITE (English), Lara WOLTERS (S&D, NL), Rapporteur, It's about what kind of trade we want in the future, how we see globalisation, and about defining our relationship with China. It's about serious action on sustainability and climate. And if we don't take a firm stand in Europe, then who will? Our task in a United Parliament is to set global standards, as we have done in the past.

SOUNDBITE (English), Lara WOLTERS (S&D, NL), Rapporteur, Charity starts at home. I think that's a good idea. Because it is not true, you and I know that we can't change the world so as individuals. The strongest shoulders have to bear the heaviest burden. And a better world starts with better companies.

SOUNDBITE (English), Lara WOLTERS (S&D, NL), Rapporteur, That's better for everybody who's standing in a shop and wondering how which clothes they should buy, because there should be an obligation. People have to take this seriously. Those companies will be supported if we adopt these rules. But, the companies who ignore the rules and abuse the situation have to be stopped in their path.

SOUNDBITE (English), Lara WOLTERS (S&D, NL), Rapporteur, We can see that the thousands of people who died, workers in Qatar during the World Cup building stadia and we know that the natural reserves such as in Indonesia, the forests being pulled down to build pipelines. So, we have to have responsible companies. And to do that, we have to have European legislation.

SOUNDBITE (English), Lara WOLTERS (S&D, NL), Rapporteur, Many companies are asking themselves for clearer rules but should apply across Europe. At the moment, this is falling on deaf ears. However, at the right in this Parliament are talking about all sorts of right of establishment and the red tape that companies have to put up with. But, you know, there are other people who are suffering and other ways of addressing this.

SOUNDBITE (English), Lara WOLTERS (S&D, NL), Rapporteur, And I think political games is really not where we should be now. Let us assume political responsibilities tomorrow as Europeans, as European Parliament. Let us take a serious step tomorrow for a more sustainable and a fairer world. Thank you.

SOUNDBITE (French), Raphaël GLUCKSMANN (S&D, FR), Committee on Foreign Affairs (AFET), Ladies and gentlemen, this is a pregnancy test. And I found a letter in here. It was a Chinese worker asking for help, someone producing something that is then sold in a French chemist. So this is the irresponsible pyramid of globalisation. A world without rules where those who hold the most power also have the least responsibility. Zara, Nike and Shein.

SOUNDBITE (French), Raphaël GLUCKSMANN (S&D, FR), Committee on Foreign Affairs (AFET), And the moment has come to make sure that multinational companies are held accountable. We're talking about human rights violations in the value chain. The time has come to make sure they stop hiding behind their supplier, subcontractor or branch. This Due diligence act is extremely important to try and water it down or to reject it flies in the face of our principles and our interests.

SOUNDBITE (French), Raphaël GLUCKSMANN (S&D, FR), Committee on Foreign Affairs (AFET), Each and every one of us, ladies and gentlemen, will have to pay for this when it comes to the vote. Thank you.

SOUNDBITE (English), Barry ANDREWS (Renew, EI), Committee on International Trade (INTA), Dear colleagues, all companies carry out due diligence on their supply chains, but only insofar as it impacts the operations of their own company. What makes this proposal radical is that for the first time, companies will be mandated to carry out due diligence on their supply chain as it affects the planet, as it affects human rights abuses.

SOUNDBITE (English), Barry ANDREWS (Renew, EI), Committee on International Trade (INTA), This has been an extremely divisive text, but I want to set the record straight. Contrary to what you might hear from this, in this hemicycle today, SMEs are excluded from the proposal. Contrary to what you might hear today, this is not a regulatory burden. There are already supply chain laws in EU member states. So this is deregulatory in effect by creating a level playing field.

SOUNDBITE (English), Barry ANDREWS (Renew, EI), Committee on International Trade (INTA), It is also aligned with the Corporate Sustainability Reporting Directive and therefore companies not only know what they have to report, but they also know what they have to do. So this provides businesses with the opportunity to take advantage of the European Green Deal. It also gives citizens for the first time a very clear choice. It takes human rights and environmental degradation out of our shopping baskets. Thank you very much.

SOUNDBITE (German), René REPASI (S&D, DE), Committee on Economic and Monetary Affairs (ECON), President, Commissioner, ladies and gentlemen, money moves the world. A world in which companies are hardly impressed by underemployed competition authorities in countries or complaints before the courts that are very difficult to prove. No, in this world, all they're scared of is that people will turn the tap off to stop their flow of money. If people start complaining about human rights and the environment in their supply chains.

SOUNDBITE (German), René REPASI (S&D, DE), Committee on Economic and Monetary Affairs (ECON), I think this is the possibility that exists for Council. But the right doesn't want to close this tap and the Council doesn't either. People who've made big profits, ladies and gentlemen, has the damn duty to make sure that these profits go to protect human rights and the environment so that people who absent the right, I can just appeal to them. Come back to the good side. It is not too late yet.

SOUNDBITE (Dutch), Samira RAFAELA (Renew, NL), Committee on Employment and Social Affairs (EMPL), I hope that the European Parliament tomorrow will assume its responsibility. It's a great shame to see over recent days that certain colleagues, most notably from the right in this chamber, have been trying to find a coalition to table amendments that goes completely contrary to the essence of this new and important piece of legislation. I'd like to thank the rapporteur a very good job that's been done.

SOUNDBITE (Dutch), Samira RAFAELA (Renew, NL), Committee on Employment and Social Affairs (EMPL), It's no excuse that the ample committee wanted to go a lot further, and if I had a say in this, then there would have been a question of responsibility for all companies, regardless of their size when it comes to human rights and the environment. It's a good deal because it doesn't matter how big the administrative pressure is. Human rights cannot be subjugated.

SOUNDBITE (Dutch), Samira RAFAELA (Renew, NL), Committee on Employment and Social Affairs (EMPL), But it's no time to be dogmatic. We need to push on through. We need to finally give companies the possibility to assume international responsibility pursuant to the OECD guidelines. We're going to push on with this because we want to look at products that are made from forced labour. They have to be removed from our markets. Economy is driven by people, made by people. So first and foremost, that is what we're doing this for as wellq, for people. Thank you.

SOUNDBITE (German), Tiemo WÖLKEN (S&D, DE), Committee on Environment, Public Health and Food Safety (ENVI), President Thank you very much, Commissioner. Thank you for being here, ladies and gentlemen. What right do we have in the European Union to consume products that are produced in parts of the world where human rights are being abused, the environment is being destroyed or actually people are being exploited?

SOUNDBITE (German), Tiemo WÖLKEN (S&D, DE), Committee on Environment, Public Health and Food Safety (ENVI), What right do we have to do that? We don't have a right to do that at all. Hence, it is very it is essential that we have a strong supply chain law that applies not just to the EU and stops at its borders, but it has global application.

SOUNDBITE (German), Tiemo WÖLKEN (S&D, DE), Committee on Environment, Public Health and Food Safety (ENVI), And with this proposal that will be looking at adopting tomorrow, we have an opportunity to make sure we're not using double standards, but we are in fact making sure that human rights and environmental standards are applied across the world in the same way. And I certainly hope that the EPP will agree to this law tomorrow and will not adopt a compromise that will make sure that human rights and that and the environment would not be protected.

SOUNDBITE (German), Tiemo WÖLKEN (S&D, DE), Committee on Environment, Public Health and Food Safety (ENVI), There should be fair, fair approach for everybody concerned, including the companies of the environment, human rights and the workers. And that's why we have to send this common signal tomorrow. Thank you.

SOUNDBITE (French), Didier REYNDERS, European Commissioner for Justice, Thank you very much, President, Ladies and gentlemen, Members of the European Parliament. I'm particularly happy to be having this debate with you today on the draft report of your European Parliament on Corporate Sustainable Due Diligence.

SOUNDBITE (French), Didier REYNDERS, European Commissioner for Justice, The Commission welcomes the work that has been done by the Legal Affairs Committee as well as the interest of the European Parliament in the legislative proposal that was presented by the Commission in February of last year, which is a common political priority.

SOUNDBITE (French), Didier REYNDERS, European Commissioner for Justice, I would like in particular to express my thanks to the Rapporteur, Madam Lara Wolters, as well as the Shadow Rapporteurs for this file. We have had the opportunity on numerous occasions throughout the whole of this process to have exchanges of views in a particularly constructive atmosphere.

SOUNDBITE (French), Didier REYNDERS, European Commissioner for Justice, We share the ambition to have cross-cutting legislative action at European Union level. So, we can genuinely implement the goals of the EU in terms of the transition to a fairer, more sustainable, approach towards company law. You will vote tomorrow on a proposal that represents a unique opportunity.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, This legislation can have an important impact on the way companies operate globally. It can lead to the development of new, more sustainable business models, by large companies operating in the European Union market. Many stakeholders are asking for this: consumers, investors, employees and the wider public, as well as many companies themselves.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, Indeed, this is an initiative where we want companies to be on board. We are ready to continue to work together with them to make due diligence a reality on the ground in order to achieve all goals, we proposed harmonised and mandatory rules on cop-out due diligence and directors duties.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, Existing international recommendations and voluntary schemes have played an important role so far, but have not been sufficient to lead to the necessary changes and to ensure a level playing field throughout the whole economy. With this proposal, we can indeed offer legal certainty and a level playing field for companies across the European Union, support for SMEs, better access to finance and guidance to facilitate the transition.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, This proposal aims to support companies in winning their business in a way that effectively address possible negative impacts on human rights and the environment throughout their value chains. A review  more than 2000 studies  shows that integrating human rights and environmental protection into business operations leads to competitive advantages in all sectors of the economy and to more innovation.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, So our main objective is to ensure that long term perspectives and sustainability factors are better integrated in corporate strategies and decision making. Therefore, in our view, a clarification of the directors duty of care is also useful. The duty of care of director us is already present in all the legal systems of all Member States.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, The Commission's proposal does not set a new duty of care, but only clarifies duties already present in national law to make sure that directors are empowered to act also with regard to the long term. It is important to make sure that sustainability considerations are taken into account in the major decisions of large companies.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, The proposal does not change the existing enforcement regime in this regard. Only shareholders would be able to hold directors to account. As regards climate change, in all proposal, we provided for a special regime that would require large companies to adopt a climate transition plan to ensure that their business model and strategy are compatible with the objective to limit global warming warming to 1.5 in line with the Paris Agreement.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, The Commission change to be covered by the whole due diligence regime. And of course, the Commission did not propose sorry to change to be covered by the whole due diligence regime so that two systems, one with the due diligence process for harms to the environment and violation of human rights and a transition plan for climate.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, Ladies and gentlemen, the Commission proposed that the new rules apply only to large companies which have the capacity to implement the measures needed and notably to scrutinise their value chains. SMEs don't fall under the scope of the proposed directive and would therefore be excluded of the administrative and civil liability regimes contemplated in terms of enforcement.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, To limit the impact of this proposal on SMEs across value chains. A commission proposed to provide them with technical and financial support, notably as SMEs should benefit from specific guidance and tools.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, In a nutshell, our approach when designing the proposal has therefore been guided by the need to ensure proportionality, being mindful of impacts on competitiveness, while at the same time ensuring that we trigger a solid change on more sustainable value chains.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, I would like to conclude by praising again your work and commitment on this file. With this report we are making further progress in this important filled. It is a good indicator that we should be able to reach a final agreement soon.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, I am now looking forward to the upcoming trialogues. I thank you, of course, for your attention. And if it's possible to go further tomorrow, we will start very fast. The trialogue. But before that, I will now listen with interest to your interventions. Thank you very much.

SOUNDBITE (Swedish), Ilan DE BASSO (S&D, SE), Committee on Development (DEVE), Thank you, President. Would you two vote on a piece of legislation that is breaking new ground so that companies will be forced to take into account human rights and the environment? It shouldn't really be breaking new ground in the 21st century. Companies that work in developing countries have to respect human rights, the environment and the principle of the rule of law, especially if we are to achieve the goals for the UN 2030.

SOUNDBITE (Swedish), Ilan DE BASSO (S&D, SE), Committee on Development (DEVE), It's not the size of the company, it's the size of the damage that is done by the company that is essential. So more companies should be covered by this legislation. The trade unions influences of central importance to strengthen this legislation. We need more efficient, more effective and proportionate sanctions for companies who violate human rights and damage the environment.

SOUNDBITE (Swedish), Ilan DE BASSO (S&D, SE), Committee on Development (DEVE), Now, it is important that we get this done and dusted. To generate a future in which human rights and the environment are protected. And those who abuse that are held to account for their actions. Thank you, President.

SOUNDBITE (English), Deirdre CLUNE (EPP, IE), Committee on Internal Market and Consumer Protection (IMCO), We need to support and to enable business act more sustainably and responsibly in their global and their EU activities. And this proposal is a step towards doing that, while also bringing legal certainty and a level playing field when compared to the existing situation where there is a varying degree of approaches to taking across the Member States.

SOUNDBITE (English), Deirdre CLUNE (EPP, IE), Committee on Internal Market and Consumer Protection (IMCO), Products and services as a result of human rights and environmental violations should not be allowed on the European market. The EU is capable of setting high standards and having a strong influence on global supply chains, and we can use this influence to address human rights violations and breaches of social and environmental standards.

SOUNDBITE (English), Deirdre CLUNE (EPP, IE), Committee on Internal Market and Consumer Protection (IMCO), And I was concerned that the proposed Directive took the minimum harmonisation approach because it leaves room for Member States to impose diverging obligations from those in this Directive that may actually undermine legal certainty and that creation of that level playing field.

SOUNDBITE (English), Deirdre CLUNE (EPP, IE), Committee on Internal Market and Consumer Protection (IMCO), So the improved text with a dedicated article to fully harmonise the provision of this directive during its transposition, and therefore after there would be a revision of six years to assess whether it should be turned into a regulation is an improvement and it will lead to an increase of harmonisation across cross-border cooperation. Thank you.