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EU supply chain law: The GWÖ welcomes the decision and names points for improvement

The Economy for the Common Good Austria welcomes the decision of the EU Parliament on the Supply Chain Act Directive CSDDD and names points for improvement

The GWÖ movement in Austria welcomes the decision of the EU Parliament on its position on the CSDDD, the Supply Chain Law Directive. With the exception of one point – Art. 26 – the plenary largely followed the proposal of the lead legal committee, several attempts at watering down were averted. However, regulation could be simplified by merging the two “CS” directives, CSRD and CSDDD, as the Common Good Balance Sheet already envisages.

"A first step in the right direction"

"With the CSDDD, a further pillar is set in the field of international responsibility for business," Christian Felber, initiator of the Economy for the Common Good movement, welcomes the position of the EU Parliament, especially from the point of view of the GWÖ global economic freedoms and rights as well as corresponding duties and responsibilities must be two sides of the same coin. Significantly, Article 26 of the CSDDD fell victim to the parliamentary vote, which would have made management directly responsible for monitoring due diligence. Only Article 25 remained, which obliges management to “observe” risks relating to human rights and environmental and climate protection. "This is significantly less than the enforceable obligation to monitor the corresponding due diligence obligations, and the fact that the Council also wants to delete Article 25 in its position shows how unwilling the EU legislators are to seriously hold international corporations to their obligations ' said Felber. The GWÖ notes positively that the threshold for the companies concerned - significantly lower than in the German supply chain law - was lowered to 250 employees and that the financial sector was not excluded. "All in all, it's a start that goes in the right direction," says Felber. The GWÖ is now campaigning for the final text of the CSDDD to be as ambitious as possible in the trialogue between the EU Parliament, the Council and the Commission.

CSRD and CSDDD could also be merged

For the future, Felber fears a patchwork of too many new regulations that are too extensive and not well coordinated, such as the two “CS” guidelines CSRD and CSDDD, the taxonomy, the financial market disclosure regulation, the anti-greenwashing initiative and others. "It could also be easier," says Felber, "by measuring the corporate sustainability performance once and quantitatively comparable for all stakeholders. Then all stakeholders - financiers, public buyers, business developers and consumers - could orientate themselves on it.

The balance sheet for the common good already provides this "one pour", which would not only create transparency, but also the possibility of linking with positive and negative incentives for e.g. B. particularly climate-friendly or harmful companies. The integration of the direct responsibility of the management for the protection of human rights would also be possible without any problems”, concludes Felber.

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Written by ecogood

The Economy for the Common Good (GWÖ) was founded in Austria in 2010 and is now represented institutionally in 14 countries. She sees herself as a pioneer for social change in the direction of responsible, cooperative cooperation.

It enables...

... companies to look through all areas of their economic activity using the values ​​of the common good matrix in order to show common good-oriented action and at the same time gain a good basis for strategic decisions. The "common good balance sheet" is an important signal for customers and also for job seekers, who can assume that financial profit is not the top priority for these companies.

… municipalities, cities, regions to become places of common interest, where companies, educational institutions, municipal services can put a promotional focus on regional development and their residents.

... researchers the further development of the GWÖ on a scientific basis. At the University of Valencia there is a GWÖ chair and in Austria there is a master's course in "Applied Economics for the Common Good". In addition to numerous master's theses, there are currently three studies. This means that the economic model of the GWÖ has the power to change society in the long term.

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