I understand that the Deputy may be referring to the European Commission’s forthcoming proposals on Sustainable Corporate Governance (SCG). Publication of the proposals has been delayed and it is now expected that they will be published in December. Details are awaited but it is understood that the proposals will require companies to put in place policies and procedures to monitor the adverse effect of their operations and/or supply chain on human rights, labour rights, social rights and environmental issues.
My Department will carefully consider the proposals, when available, and will engage with stakeholders to inform Ireland’s position on the legislation. Ireland is a strong advocate of human rights protections and will seek to ensure that the proposals strike the right balance by protecting fundamental rights whilst ensuring that the measures to be implemented by companies achieve the policy goals and are not unduly onerous, particularly with regard to SMEs.
In parallel, there is already an obligation on certain large companies in the EU to publish annually non-financial information in respect of their social and environmental impact including on matters such as human rights and climate change or explain where they do not. In April 2021, the European Commission published a significant revision of the current rules in the form of a proposal for a Corporate Sustainability Reporting Directive. Under the proposals all large companies and listed SMEs will be required annually to publish information on their performance and impact in respect of environmental, social and governance (ESG) matters, including human rights matters in accordance with mandatory EU standards. The proposal is being negotiated by Member States at Council Working Party and Ireland is taking an active part in progressing these important and positive developments.