The European Commission Launches Public Consultation on Sustainable Corporate Governance: Promoting Long-Term Sustainable and Responsible Corporate Behavior

As stated in the European Green Deal, sustainability should be further integrated into the corporate governance framework, as many companies still focus excessively on short-term financial performance compared to their long-term development and sustainability aspects. As a follow-up, the Commission announced a sustainable corporate governance initiative to promote long-term sustainable and responsible corporate behavior, as included in the Commission’s Work Programme for 2021. This initiative also builds on existing work in the context of sustainable finance. The consultation launched today asks how the EU can best help businesses in their operations, towards the transition to a more sustainable economy and ensure that environmental and social interests are integrated into business strategies. The consultation will complement the findings of two studies: on due diligence requirements through the supply chain and on directors’ duties and sustainable corporate governance.