...GBI is not an advocacy organisation and never speaks on behalf of its members; member companies speak for themselves. But GBI’s standing and strong reputation, based on 16 years of work with companies can, on occasion, be called into question by individual members’ performance or actions outside of the GBI space...

The recent so-called Evian Letter named the CEOs of 46 German and French companies calling on their respective political leaders to pursue de-regulation in the interests of European competitiveness. One of the pieces of legislation mentioned in the letter was the CSDDD. While the process behind this letter remains unclear with several signatories having since clarified or distanced themselves from the letter’s content, the signatures of four GBI member company CEOs appeared on the letter.

This is the opportunity to remind ourselves of a key point: competitiveness is vital to Europe’s prosperity but it must not be misconstrued as a race to the bottom, a race that Europe and European businesses cannot, and should not, seek to win. Competitiveness and responsible business conduct are not conflicting objectives but mutually reinforcing ones, and the CSDDD is not an obstacle to growth. It is a framework for sustainable, long-term competitiveness built on respect for people and planet.

Efforts to dismantle it go against a needed “smart mix” of mandatory and voluntary measures, as elaborated in the UNGPs; it risks undermining both business resilience and public trust in European leadership...

As CEO of the Global Business Initiative on Human Rights, I understand the importance of the need to strengthen European competitiveness, but respectfully disagree that scrapping the CSDDD as the right move to achieve that...

The aim of the CSDDD legislation is to provide what business craves – certainty and a more level playing field. That is beneficial to stakeholders such as investors, business partners, customers, suppliers and workers who gain greater clarity about an enterprise’s performance and expectations....

It is no coincidence that many states outside Europe, for example in Asia and South America, are pressing ahead with legislation like the CSDDD. They recognise the advantages...