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Image header Agence Europe
Europe Daily Bulletin No. 12625
Contents Publication in full By article 24 / 41
EUROPEAN PARLIAMENT PLENARY / Companies

European Parliament adopts position on sustainable corporate governance

At a plenary session on Thursday 17 December, MEPs set out their expectations for sustainable corporate governance, with a view to the concrete initiatives that the European Commission is expected to present in 2021 (see EUROPE 12552/15)

They adopted, by 347 votes to 307 with 42 abstentions, the report drawn up by Pascal Durand (Renew Europe, France), which calls for a new approach through obligations and incentives and not only through disclosure of information (see EUROPE 12602/18).

It should be noted that the EPP, ECR and ID Groups, as well as part of the RE Group, voted against the report. The Christian Democrat Group particularly criticises the text for introducing too heavy an administrative burden for European businesses, especially SMEs.

The text also invites the Commission to present a legislative proposal to ensure that the duties of directors include the long-term interests of the company as well as those of employees and other relevant stakeholders. In addition, the proposal should ensure that members of the management, executive and supervisory bodies are obliged to define, disclose and monitor a sustainability strategy for the company.

In developing this strategy, companies should be required to inform and consult all relevant stakeholders, according to the text.

However, MEPs adopted an amendment in plenary session, carried by a majority from the EPP group, to exclude from this commitment SMEs that do not operate in high-risk sectors, which should be defined by the European Commission. (Original version in French by Marion Fontana)

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