EU Warned over Potential Lowering of Ecological and Social Standards
Environmental Activists Warn of Weakening EU Environmental and Social Standards
Environmental activist Lena Schilling, a Green member of the EU Parliament for nearly a year, has raised alarm about potential relaxations of environmental and social standards across Europe. During a visit to Vienna on Monday, she criticized the EU Commission's latest initiatives aimed at reducing bureaucracy, known as omnibus packages, warning that they could lead to the dilution of these crucial regulations.
Schilling and Green National Councilor Elisabeth Goetz are particularly concerned about planned relaxations of already agreed rules in four areas, including the Supply Chain Act. The Act, intended to encourage companies to identify and minimize social and environmental risks along their entire supply chain in EU countries, may become ineffective if the proposed maximum fine of five percent of global turnover is abolished, and EU-wide civil liability is eliminated. The absence of mandatory rules, regular checks, and the possibility for those affected to claim compensation, according to the activists, renders the Act powerless.
Similar concerns surround the directive on sustainability reporting. Originally planned to apply to companies with 250 employees, the proposal is now to raise the threshold to 1,000 (and 50 million euros in annual turnover). Furthermore, the implementation date has been postponed from 2026 to 2028, a move the Greens deem problematic.
Schilling sees the European Commission's move as a "declaration of bankruptcy" and a departure from the values Commission President Ursula von der Leyen purported to uphold during her previous term. She places the primary responsibility on the German and French heads of government, Friedrich Merz, and Emmanuel Macron, accusing them of attempting to undermine central European regulations behind closed doors.
For Goetz, the loosening of reporting obligations is driven by right-wing populists in the EU Parliament, potentially jeopardizing the economy. She argues that deregulation increases risks for investors, contrary to the assumption that it would lead to more innovation, competitiveness, and growth.
The Greens also anticipate another omnibus package from the Commission for the energy sector, which could lead to a watering down of requirements for building insulation. This could potentially harm domestic companies that export insulation materials, Goetz warns.
The relaxation of these environmental and social standards, as the activists argue, could undermine efforts to improve sustainability and human rights protections within global supply chains, potentially setting back the progress made towards more ethical and sustainable business practices in the EU.
- The planned relaxations of agreed rules, such as those in the Supply Chain Act, could weaken the science of climate-change mitigation and environmental-science regulations, as they may render the Act powerless and ineffective.
- The Greens also warn that another omnibus package from the Commission for the energy sector could lead to policy-and-legislation relaxations, potentially watering down requirements for building insulation, which could impact environmental standards and the competitiveness of domestic companies in the general-news arena.
- The loosening of reporting obligations, as the activists argue, could have broader implications for the transparency and accountability of companies in terms of sustainability reporting and their social and environmental responsibilities, potentially affecting the progress made in fostering ethical and sustainable business practices across Europe.
