The organisation is calling on European Commission President Ursula von der Leyen and her team of commissioners to maintain the integrity of these vital pieces of legislation.
In a directive from President von der Leyen, Justice Commissioner McGrath is tasked with ensuring that current regulations are effective and to concentrate on diminishing administrative burdens by simplifying laws. The directive sets a target to cut reporting obligations by at least 25% for businesses in general, and by at least 35% for small and medium-sized enterprises (SMEs).
This heightened focus on sustainability regulations follows the report on EU competitiveness by Mario Draghi, which President von der Leyen cited in her comments.
Draghi's report, which attributes the sluggish EU economy in part to unenforced rules, only briefly mentions the due diligence framework.
Furthermore, it comes at a time when corporate investments are low despite rising profits—a trend resulting in increased shareholder dividends rather than investments in Europe's productive capabilities. Critics argue that this approach could undermine workers' rights and environmental sustainability for the sake of corporate earnings.
The CCC asserts that simplification should not be an end goal but should instead align with the Green Deal's aim of fostering an equitable and sustainable economy.
Corporate due diligence and sustainability reporting are designed to ensure respect for human rights and environmental standards—principles that should guide commissioner McGrath's efforts.
The European Commission is being urged to shift its focus from easing regulations to encouraging investment in public goods, social protection, and transitioning the EU economy towards sustainability.
The commission's current emphasis on competitiveness as part of its 2024-2029 governance programme may lead to a detrimental race to the bottom in terms of labour costs and materials, threatening workers' livelihoods both within the EU and globally.
If profit maximisation continues to overshadow social and environmental considerations, capital holders will benefit while workers, consumers, and society at large suffer. This perspective echoes arguments historically made by major business lobbying groups, CCC noted.
For garment workers supplying the EU market, regulating value chains of prominent brands and manufacturers is critical for their survival. The CSDDD and CSRD could provide these workers with transparency, protection, and avenues for redress.
The CCC implores the commission not to reverse progress on legislation that promises hope for workers and communities around the world. These rules are forward-thinking and essential to establishing resilient, sustainable, and equitable value chains, a sentiment echoed by experts, civil society organisations, human rights advocates, UN agencies, EU citizens, and businesses. The CCC commends the commission for initiating public consultation on the Directive's Guidelines promptly and encourages relevant Commissioners to continue developing secondary legislation.
In October this year, CCC called for fashion brands to help end the legal cases against worker groups and protesters, however H&M tells Just Style the cases have already been dropped.
