The proposal for a directive on the due diligence of companies in matters of sustainability raises considerable concerns to the business community due to the serious impact it will have on the activity of EU companies, and the level of their competitiveness, therefore CIP has prepared a document listing the main aspects that stand out as most prominent for Portuguese industry and companies.
It should be noted that this view was also expressed in the BusinessEurope position that highlights and comprehensively describes the concerns of the European business community, endorsed by CIP.
In summary, CIP considers it fundamental to create a structure that:
- Create an effective, viable, and proportionate framework.
- Recognise the real economic impact of the proposal, in particular on SMEs.
- Provide legal clarity and certainty.
- Recognise that corporate governance is not appropriate for due diligence legislation.
- Establish well-balanced enforcement mechanisms and sanctions that are appropriate and proportionate, considering that the proposed civil liability regime is complex and disproportionate.
- Bring the proposal into line with better regulation principles.
- Limit and streamline the power of supervisors to due diligence obligations.
- Ensure equitable conditions.
- Facilitate a shift to an educational approach.