European Coalition for Corporate Justice Press Release Immediate Release: 26 February 2014

Companies required to report on environmental and social impacts compromise reached on EU reform
Brussels, 26 February, 2014 A last minute compromise deal between EU Member States and the European Parliament negotiators means that listed companies will for the first time be required to report on key human rights and environmental issues, including within the supply chain [1] , if the law is adopted later by the Parliaments plenary and the Council. The compromise has been welcomed as a timid step forward by the European Coalition for Corporate Justice (ECCJ) a broad coalition representing NGOs, consumer groups, trade unions and academics, who have been urging legislative reform [2]. But a spokesperson for ECCJ said they were disappointed that some Member States had weakened the proposal. The European Parliaments legal affairs committee had asked for clearer and more demanding reporting by all large companies. ECCJ coordinator Jerome Chaplier said: This is an important step forward as it means citizens and investors will have access to meaningful information from companies rather than the selective and often misleading data currently provided. They will have to release details of important risks to people and to the environment. This means a listed large oil company will have to report on its oil spills and the health risks from gas flaring for example, or a listed clothing retailer will have to consider risks in its supply chain. Original proposals to extend the law to all large companies were blocked by some national governments, who also inserted a number of loopholes which could mean some companies will be able to avoid reporting. Jerome Chaplier added : Some Member States have sought to water down this legislation, weakening its scope and power. Some of the clauses introduced could be used by companies to limit what they report, effectively undermining the intentions of this reform. The European Commission must be ambitious in the way this reform is implemented and ensure that misleading information provided by companies can be challenged. Guidelines for companies on how to report under the new reform, including on water use, land use, greenhouse gas emissions and use of materials, are expected from the European Commission within the next two years. The legislation is expected to be reviewed after four years. ENDS Contact: Jerome Chaplier, coordinator European Coalition for Corporate Justice : 0032 (0)477 184753, coordinator@corporatejustice.org

Notes: [1] See media briefing here: http://www.corporatejustice.org/IMG/pdf/media_briefing_26-022014.pdf [2] The European Coalition for Corporate Justice (ECCJ) represents over 250 organisations spread across 15 European countries, including NGOs, trade unions, consumer advocacy groups and academic institutions. For more information see: www.corporatejustice.org