The Clean Clothes Campaign urges EU Commission not to focus on deregulation at the expenses of workers, human rights and the environment
In the mission letter signed by Commission President Ursula Von der Leyen, Justice Commissioner McGrath is instructed to “ensure that existing rules are fit-for-purpose and focus on reducing administrative burdens and simplifying legislation. You must contribute to reducing reporting obligations by at least 25% - and for SMEs at least 35%.” The high attention paid to sustainability rules comes in the aftermath of Mr Mario Draghi’s report on competitiveness in the European Union (EU), referred to by President Von der Leyen in her remarks.
Yet, in his report Mr Draghi seems to point, among others, to not-yet enforced rules to explain the existing slow pace of the EU economy, and only makes cursory reference to the due diligence framework. Moreover, Mr Draghi’s criticism takes place in an environment where corporate investments have remained low while corporate profits have continued to increase, having been funneled into shareholders’ pockets more than into investments in Europe’s productive capacity. In short, Mr Draghi’s analysis and its translation into policy action by the current Commission seem to be used as a pretext to sacrifice labour and human rights as well as environmental sustainability in the name of corporate profits. Mr Draghi’s diagnosis of the EU economy’s ills is grounded, but his prescription points to more of the same medicine.
Simplification cannot and should not be an end in itself, it must serve the objective of the Green Deal to achieve a just, fair and sustainable economy. Corporate due diligence and sustainability reporting obligations exist in a view to ensure companies’ respect for human rights and the environment, which should remain the guiding principle of the Commissioner’s actions. The Commission’s attention should move from simplifying regulation to stimulating investments in public goods, including social protection and the transformation of the EU economy towards one that is sustainable for workers and the planet.
Yet, the unbridled pursuit of competitiveness, the driver of the Commission's new 2024-2029 governance programme, risks perpetuating a race to the bottom for cheap labour and materials and jeopardising the livelihoods of workers in the EU and abroad. Should the maximisation of profits continue to take precedence over social and environmental protections, competitiveness will continue to exclusively reward capital-holders while impoverishing workers, consumers and our societies. Not surprisingly, but alarmingly, Mr Draghi and the Commission’s President seem to be recycling arguments put forward by large business lobbies.
For the workers making the clothes sold on the EU market and their communities, regulating the value chains of large brands and manufacturers is a question of survival. The CSDDD and the CSRD have the potential to provide workers with an opportunity for transparency, protection and redress.
The CCC urges the Commission not to backtrack on landmark legislation that offers hope to workers and their communities worldwide, for which transposition and implementation have already started. Sustainability rules are future-looking and will be crucial to ensure resilient, sustainable and fair value chains - a view shared by experts, civil society, human rights defenders, UN institutions, EU citizens and businesses alike. The CCC is pleased that the Commission has swiftly embarked on the public consultation process on the Guidelines to the Directive, and we encourage the relevant Commissioners to continue working on secondary legislation.
Press Contacts
Giuseppe Cioffo, Lobby and Advocacy Coordinator, CCC International Office - giuseppe@cleanclothes.org +32 492 49 16 68
Muriel Treibich, Corporate Accountability Coordinator, CCC International Office - muriel@cleanclothes.org +32 471 64 09 34