EU-Commission launches public consultation on sustainable corporate governance
The EU-Commission has launched a public consultation on sustainable corporate governance seeking the views of a broad range of stakeholders. According to the EU-Commission, sustainability in corporate governance shall encompass encouraging businesses to consider environmental (including climate, biodiversity), social, human and economic impacts in their business decisions. In addition, it shall focus on the long-term sustainable value creation rather than short-term financial value. The EU-Commission also emphasised that competitive sustainability shall contribute to the recovery after the COVID-19 pandemic and to the long-term resilience and development of companies.
Pursuant to the EU-Commission, the public consultation therefore aims to gather data and to collect the views of stakeholders with regard to a possible initiative on sustainable corporate governance. These stakeholders include, in particular, businesses and their directors (including i.a. non-EU companies active in the EU internal market), individuals and groups impacted by the operations of these businesses in the EU and in their global value chains (employees, consumers, investors, local communities etc.), investors, environmental organisations, trade unions and NGOs.
The consultation closes on 8 February 2021. The results of this consultation shall be considered in the EU-Commission’s legislative proposals regarding mandatory human rights and environmental supply chain due diligence requirements, enhanced directors’ duties and sustainable corporate governance that are expected to be presented in 2021.