Ref. Ares(2022)1789387 - 10/03/2022
 
THE PRESIDENT 
 
 
Mr Thierry Breton 
 
Commissioner for Internal Market 
 
European Commission 
 
Rue de la Loi 200 
 
B-1049 Brussels 
 
BELGIUM 
 
 
 
 
 
 
 22 
November 
2021 
 
 
 
 
Dear Commissioner, 
Dear Thierry, 
 
 
RE: Upcoming Sustainable Corporate Governance and Due Diligence Package 
 
Thank you very much again for joining our Advisory Support Group CEO event on 9 
November 2021. 
 
I am writing to you following up on the good exchange during the event, where you have 
also heard quite a number of concerns regarding the above initiative.  
 
Getting the future EU framework on due diligence and sustainable corporate 
governance right, is essential to preserve the attractiveness of Europe as a place to 
invest and promote European values across the world.  
 
European companies fully understand the importance of addressing risks that can occur 
in their supply chains and they recognise the potential added value of harmonised rules 
on due diligence in the Single Market, provided that key conditions are met. Thus, it is 
essential that the upcoming initiative: 
●  ensures that the rules are clear, workable and the scope limited to first-tier 
suppliers;  
●  does not burden SMEs who have more difficulties in terms of resources and 
leverage to obtain information or impose behaviours in the supply chain;  
●  is based on an obligation of means, and considers the notion of safe harbour 
for those companies that prove to meet the requirements (e.g. via certification or 
adhering to sectoral schemes). 
We also call for the due diligence initiative to be complemented by supporting measures 
that would help companies to fulfil their obligations, including public tools to access 
relevant and reliable information on value chains.  
 
 
 
   
 
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Although we appreciate the search for solutions, such as “cascading” model 
contractual clauses (inspired on an American Bar Association Project), we have 
serious doubts regarding the way they could actually be implemented in practice, as 
well as their legal value when it comes to assessing accountability of companies who 
use them. 
With regard to sustainable corporate governance, the Commission must ensure that this 
initiative does not harm companies’ ability to do business effectively nor weaken 
current corporate governance models by blurring directors’ duties. There is no one-size-
fits all approach to balance company interest with the interests of different stakeholders.  
The current legal framework remains largely fit for purpose to encourage companies 
integrating sustainability in the core of their business strategies and models, which they 
are committed to do. The upcoming corporate governance initiative should 
therefore be well-justified and limited in scope. 
 
Of course, we understand the procedure and that we need to talk to the co-legislators. 
But at this very moment the Commission, as holder of the right of (legislative) 
initiative, has the pivotal role in taking a solid first step towards building an effective 
and workable future EU framework in these two areas. 
 
We therefore urge you to make sure that the above concerns are duly taken into 
account in the final preparations.  
 
BusinessEurope stands ready to continue engaging with the Commission constructively 
in this phase of the legislative process, and in the next phase with the two co-legislators 
Council and European Parliament. 
 
 
 
 
 
 
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