ecoDa, with 6 other leading European business and individual investors organisations – BETTER FINANCE, European Family Businesses, EuropeanIssuers, FESE, Invest Europe and SMEUnited – sent a joint letter to the European Commission to convey their shared concerns regarding the upcoming proposal on sustainable corporate governance:
- Due diligence and corporate governance should be treated separately, and the European Commission should avoid a one-size-fits-all approach;
- Taking into consideration many interests is a natural part of directors’ duties;
- If introduced, such legislation would paralyse the functioning of the board and, in turn, hamper the ability of companies to act decisively to promote a sustainable transition;
- Too many restrictions may increase reluctance to use public markets for financing;
- One focus of the upcoming initiative should be to facilitate and strengthen the long-term engagement of shareholders and investors