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Europe: Push back on regulatory agenda

Europe: Push back on regulatory agenda

Europe’s legislative efforts to enforce corporate sustainability may be losing momentum. The delay in implementing the Forestry Directive signals potential resistance within the EU, while recent legal actions involving Shell and Rabobank also signal a shift in attitude

Driving the news: The European Parliament recently voted to delay the Forestry Directive, adding a “no risk” exemption to the law. However, concerns have been raised by small producers over the feasibility and costs associated with compliance. 

Employers speak up: The CEEMET coalition of European business organisations has called for a “pause button” to be hit on the roll-out of the Corporate Sustainability Due Diligence Directive (CSDDD). They rightly point out that this is complicated legislation, and that clear guidance is needed well in advance. Further, divergences between EU Member States in how it is transposed needs to be avoided

The big picture: These developments highlight the growing tension between environmental ambitions and economic realities. While the push for sustainability is crucial, the complexity of regulations and the burden on businesses can hinder effective implementation and economic performance.

The bottom line: Legal actions and campaigns continue to pressure corporations on climate responsibilities. The evolving legal landscape, exemplified by recent court rulings, emphasizes the critical role of corporate accountability in driving environmental change, yet challenges remain in aligning regulations with practical business needs.

MEANWHILE: The Dutch Court of Appeal has dismissed claims made by Milieudefensie, a Dutch environmental organization and backed Shell’s operations and environmental commitments by recognizing its 31% reduction in emissions, offer a blueprint for balancing industrial growth with ecological responsibility.

Rabobank vs Greenpeace: In a related environmental controversy, Rabobank is taking legal action against Greenpeace following a provocative campaign that Rabobank labelled as defamatory and a threat to personal safety.

What’s next: Rabobank demands the immediate removal of the images, emphasizing the need to protect personal safety in public discourse. Greenpeace stands firm on the necessity of holding decision-makers accountable for environmentally damaging investments.

 

ADDITIONAL INFORMATION:

CEEMET statement.

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Authors: Tom Hayes

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