On Monday, 8 February AmCham EU submitted its response to the European Commission's public consultation on Sustainable Corporate Governance (SCG). AmCham EU provided input to all sections but section V.

AmCham EU believes that the Commission’s efforts around SCG should focus on harmonization of existing legislation and the creation of a level-playing field. If introduced, a new legal framework should be proportionate and complementary to existing EU legislation and should not create additional administrative burden. New rules should also recognize companies’ existing efforts to mitigate ESG risks and recognize existing industry schemes.

With regard to due diligence, AmCham EU supports the intention of the Commission to promote human rights and the safety of workers in global supply chains, as well as certain environmental impacts and believes that any due diligence duty should be consistent with existing international frameworks. On directors' duty of care, we argue that directors should not be held liable for their decision-making and that binding rules would fail to take into account companies'  individuality and therefore negatively impact the necessary discretion and flexibility of directors. 

For questions, please contact Emilie Bartolini within the AmCham EU secretariat at EBA@amchameu.eu .