The European Commission (EC) has launched a final consultation aimed at putting the sustainable corporate governance framework it envisaged in its Action Plan for Financing Sustainable Growth into EU law.
The last piece of the EU plan, Action 10, which introduced the notion of sustainable governance as a policy-making area, deferred any regulatory intervention until a body of evidence was gathered.
As the EC gathered this evidence, Action 10 has emerged amid the current global conversation about corporate purpose, representing a European perspective in the shareholder vs. stakeholder capitalism debate.
In late 2019, the Green Deal boosted the notion of sustainable corporate governance, considering it a priority that would complement another key project in the pipeline – the revision of the Non-financial Reporting Directive.
The core of the consultation launched yesterday focuses on two studies commissioned on the back of the Action Plan t…