Paul Murphy challenges EU draft on corporate sustainability loopholes
Paul Murphy asked the Taoiseach about the EU Commission's draft Corporate Sustainability Due Diligence Directive, arguing it contains loopholes that would exclude 99% of Irish businesses. He urged stronger laws to ensure corporate accountability across supply chains on human rights, labour and environmental rights.
Main concerns
Paul Murphy told the Taoiseach the draft directive sets thresholds - applying only to companies with annual turnover over €150 million and more than 500 employees - which would exclude most Irish firms and create what he described as a lowest common-denominator approach.
Scope and exclusions
Murphy warned that the proposed thresholds would exclude 99% of Irish businesses and highlighted a further loophole that could allow companies to shift responsibility onto suppliers through contractual arrangements.
Case example
Murphy cited a Dublin-based coal marketing company that sells coal from the Correjon mine in Colombia, saying communities nearby are facing pollution of their air and water to illustrate why wider coverage is needed.
Taoiseach's response
The Taoiseach said he supports greater corporate accountability and defended the European Union's record, stating the EU has been more progressive than most international bodies on corporate sustainability. He added the draft will go through changes as it proceeds through the various councils and legal stages.
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I want to ask the Taoiseach about his position on the newly published draft Corporate Sustainability Due Diligence Directive from the EU Commission. We desperately need laws ensuring corporate accountability right through the supply chain in terms of human rights, labour rights and environmental rights. But it appears that the European Commission has gone for the lowest common denominator position, with such loopholes to carve out the vast majority of corporations in this country and across the EU. For example, 99% of Irish businesses would be excluded because the proposed legislation would only apply to companies with an annual turnover of over €150 million and over 500 employees. That would exclude, for example, the Dublin-based coal marketing company, which sells coal from the infamous Correjon mine in Colombia, where the communities nearby are facing pollution of their air and water. There is another loophole which would allow companies to effectively offload responsibility through a contract onto their suppliers. Will you work to strengthen this proposal? Thank you. Thank you. The Deputy Deputy Murphy spoke about the Sustainability Corporate Accountability EU Directive. Again, we support greater corporate accountability. I think the European Union has done far more than most across the world in terms of corporate sustainability policies and directives and accountability and holding people to task. Through the various layers of legal and judicial agencies within the European Union itself, that has been seen on an ongoing basis in terms of companies being brought before the European Corps, being brought before the Commission and being tackled in relation to a whole range of issues. So I don't accept the criticism of the European Union, which is a consistent theme of Deputy Murphy and others, notwithstanding the fact that of all continents and of all international bodies, the European Union has by far been the most progressive in terms of holding companies to account on environmental issues and a range of other issues as well. It has a draft directive. That will go through change as it goes through the various councils. councillors and so on.
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