That is why we have signed a joint statement with The European Sustainable Investment Forum (Eurosif), the Institutional Investors Group on Climate Change (IIGCC), the Principles for Responsible Investment (PRI) and more than 200 undersigned investors, service providers and other supporting organisations, to call on the European Commission to protect the integrity and ambition of the EU’s sustainable finance framework. We also joined up with dozens of large and small Dutch business, calling on the European Commission (Dutch) to preserve the goal of EU sustainability legislation. 

These rules mandate businesses to identify, report and address adverse human rights and environmental impacts of their operations inside and outside of Europe. This should not be up for renegotiation: this is a matter of decency. The rules have only recently been adopted, but they are crucial to set the societal norm such that every business adheres. Many companies have already invested in aligning their conduct to the requirements, as we are convinced that this is the only way to be competitive in the future. Whilst we welcome the commitment to streamline reporting requirements and reducing redundancy, we are worried simplification efforts will derail into lowering the sustainability standard.  

Strong lobby for short-termism

There is a strong lobbying force for this agenda from firms seeking short-term profit over long-term sustainability. These are the same firms whose business model is built on exploitation and fossil fuel extraction. The Commission risks rewarding laggards in sustainability. This could only create further uncertainty and harm legal clarity. Making adjustments at this stage would undermine the integrity of the process. 

By signing statements such as these we aim to show that many more decent businesses are ready to align their practices to the sustainability framework. 

Together we show that: 

  • We choose corporate accountability over deregulation to protect people and planet. 
  • This requires a level playing field for all companies, based on clarity and legal certainty. 
  • This is the only path towards a competitive, equitable, resilient economy.  

Regulating harmful conduct is a bare minimum

European prosperity cannot come at the expense of people in other parts of the world or the environment. Our economy cannot be built on child labour, fossil fuel extraction, deforestation, low wages, or pollution. All this means is that business should be done in a sustainable, responsible and fair manner. Holding corporates accountable is essential in order to transition to a prosperous, sustainable and equitable economy. If there is anything the European Commission should be focused on, it should be on regulating harmful conduct. 

In the end, this is a matter of common decency: lowering the standard should be non-negotiable.