Stichting B Lab Europe
B Lab Europe
B Lab is the nonprofit network transforming the global economy to benefit all people, communities, and the planet.
ID: 692415346669-86
Lobbying Activity
Meeting with Elena Arveras (Cabinet of Commissioner Maria Luís Albuquerque)
11 Feb 2025 · Sustainability Reporting
Response to Postponement of deadlines within the Accounting Directive for the adoption of certain ESRS
19 Dec 2023
B Lab recommends that EFRAG resumes its work on sector-specific standards and makes them available to companies. As a sustainability certification standard-setter, our track record of almost 20 years in engaging with companies which have no antecedents in corporate sustainability indicates that beginner-level companies perform better within a detailed framework. Our impact assessment, used by 270.000 companies globally, indicates that a degree of standardisation and granularity contributes to ease the company into their sustainability journey. The disclosures prescribed by the first set of sector-agnostic standards rely on companies to conduct a comprehensive double materiality assessment across all ESRS sustainability topics. Moreover, this assessment is expected to capture those matters specific to each company profile (so-called entity-specific disclosures). Companies must report on the materiality assessment and its outcomes, nevertheless, the likelihood that companies of similar characteristics obtain different results as to what can be considered material remains high. This risks undermining one of the objectives of the CSRD which is to increase comparability of information. Most importantly, the magnitude and cost of conducting a double-materiality assessment (in particular for first-time reporters) should not be underestimated. Taking into account the current level of maturity in sustainability management and reporting amongst most companies in scope, this will be a challenging exercise for both the reporting companies and the assurance providers. Standards are anticipated to provide clarity and assist companies in addressing this gap. While B Lab appreciates the Commissions efforts to strike a balance between ambitious reporting rules and regulatory onus on companies, we contend that the release of sector-specific standards would significantly reduce the burden.
Read full responseResponse to European Sustainability Reporting Standards
7 Jul 2023
B Lab Europe is concerned with the significant changes that deviate from the EFRAG's consensus and reduce the scope and ambition of the ESRS compared to the technical advice provided by EFRAG in November 2022. We fear these changes lack technical justification and undermine the purpose of the ESRS, which is to ensure the disclosure of meaningful, reliable, and comparable sustainability information. These alterations threaten the effectiveness of the ESRS as a foundation of sustainable finance and transition into a more sustainable and inclusive EU economy. We recommend, in particular, reviewing the following aspects of the draft Delegated Act: 1) Retaining a core set of mandatory metrics, such as E1 on Climate Change for all companies and S1 Own Workforce disclosures for companies with fewer than 250 employees. These topics are inherently material and a set of minimum requirements is what will enable comparability on the financial markets. We emphasise on the need for all data points stemming from EU legislation related to sustainable finance, particularly the principal adverse impact indicators in the SFDR RTS, to be reintroduced as mandatory. 2) Refraining from framing disclosure requirements on biodiversity impacts and non-employee workers' conditions as voluntary. This provides an offramp for companies to disclose important information, irrespective of the materiality assessment.
Read full responseMeeting with Lara Wolters (Member of the European Parliament, Rapporteur)
22 Mar 2023 · Meeting to discuss the Draft Corporate Sustainability Due Diligence Directive
Response to Sustainable corporate governance
23 May 2022
B lab Europe is the not for profit that is responsible for the B Corp movement in Europe. It is also the coordinator of The Interdependence Coalition (IC). It represents over 100 Certified B Corporations, systems change and impact driven organisations. It was established to advocate for board directors of companies registered within the EU to be mandated to consider the interests of all the company’s stakeholders in their decision-making process. It offers the experiences of B Corps as a proof of concept to support this case. B Corps are companies that have met high standards of social and environmental performance, and which have voluntarily embedded in the companies’ governing articles a commitment to run the company with consideration of the interests of all stakeholders.
To this end, the IC fully supports the Commission’s efforts to pass a Directive that would include a broader duty of care of directors. The growing demand for B Corp certification (over 6,000 companies globally sought certification in the last 2 years) and the tracked evidence on increased revenue growth of the European B Corps (on average over 30% p.a for each year of certification), indicate that such regulation would be a sum gain for climate, society and for sustainable growth.
The IC welcomes Art. 25 of the draft Directive which addresses the directors’ duties in corporate governance (the core area of focus for the IC). We recommend three changes to the framing of the article. Firstly, to expand the scope of its application to all companies (not just to those within the scope of the Due Diligence obligations). Otherwise, this regulation will have a limited effect covering, for example, only 20 companies of the 830 in the European B Corp community and an estimated 1% of all EU businesses. Secondly, Art. 25 should also refer specifically to the stakeholders’ interests alongside sustainability matters, and define clearly what is encompassed by consideration of “sustainability matters”. This would ensure consistency with the framing and criteria of the CSRD and mitigates the risk of greenwashing, through misalignment between reporting and performance requirements. Thirdly, the Directive should clarify that directors while undertaking decisions are free to weigh appropriately the interests of the different stakeholders (including shareholders) and sustainability matters. Without this clarification, directors may not feel at liberty, when the situation requires, to make decisions favoring stakeholders and sustainability matters over shareholder interests.
The arguments that such an expansion of duties is either unnecessary or anti-competitive are contrary to all evidence facing us: B Corps that have voluntarily adopted such governance practices are outperforming against their peers in terms of revenue growth (on average over 30% p.a), are attracting and retaining the best of talent and are driving change in their own spheres of influence through supply chains, investors etc. However, it is no longer appropriate or possible for those that voluntarily adopt a broad duty of care in considering all stakeholders in the running of their companies to carry the load for all the other companies not covered by this directive.
This is a unique and critical moment to reset the role of business in tackling our global climate related challenges. Without an expansion of the scope and a clearer definition of the directors’ duties in Article 25, it is hard to see how business will step up to play its most important role needed in line with the ambitions of the EU Green Deal.
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