On the 23rd of February, the European Commission published a proposal for a Directive on Corporate Sustainability Due Diligence (CSDD). It is now being discussed by the co-legislators. As regards the Council, the Czech Presidency is willing to conduct the bulk of the discussions during their mandate (from the 1st of July until the 31st of December 2022). In the European Parliament, the draft report from the rapporteur of the lead Committee on Legal Affairs (JURI), Ms Lara Wolters, will be released by the end of October. Debates will follow within the JURI Committee, in cooperation with five associated Committees on Foreign Affairs; Environment, Public Health and Food Safety; Economic and Monetary Affairs; International Trade and Employment and Social Affairs.
In this context, the European Federation of Jewellery released its position on this important matter.
The EFJ believes that an EU-wide cross-sectorial legal framework on due diligence has the potential to significantly influence the way EU businesses will conduct their operations in the future and will define an ambitious threshold for countries and companies globally. However, the new rules have to be pragmatic, implementable and they need to take into account the specificities of the jewellery sector. Given that the European jewellery and diamond sector is fragmented and consists mainly of SMEs, the EFJ advocates for the adoption of an EU legislation that would:
- Establish a proportional approach which adapts the burden of the compliance costs to the size and resources of the companies.
- Set up an appropriate support mechanism to help targeted companies comply with the rules, as well as SMEs that are indirectly affected.
- Base the due diligence system on an obligation of means rather than an obligation of results.
- Take into account the existing legislation/certification schemes in the jewellery and diamond sector to ensure consistency.
- Ensure legal certainty for companies with clear definitions of the risks and duties.
- Guarantee a level-playing field for EU companies at EU and international level to support EU competitiveness.
The Federation will continue to be fully involved, active and a source of proposals in the decision-making process.