...The study shows that listed companies within the EU still tend to focus on short-term benefits of shareholders rather than on the long-term interests of companies... Didier Reynders, Commissioner for Justice, said: “I am committed to achieving a more sustainable corporate governance. By sustainable, we mean encouraging businesses to frame decisions in terms of environmental, social and human impact for the long-term, rather than focuses on short-term gains. This study, focusing on directors‘ duties, helps us see the root causes of ‘short-termism' and identify possible EU-level solutions. We see support for mandatory rules, encompassing both director duties and a corporate due diligence duty. Therefore the Commission is launching work for an initiative on sustainable corporate governance. The aim is to enable companies to overcome short-term pressures, act in the best long-term interest of the company while being accountable for the sustainability of their companies' business conduct.  This will be beneficial for the sustainability of the businesses as well as for reaching the UN Sustainable Development Goals and the goals of the Paris Agreement on climate.” The data assessed by the study indicates a clear upward trend in corporate payouts to shareholders compared to revenues, while the ratio of investment to revenues has been declining...

A public consultation on sustainable corporate governance will be launched in autumn 2020. The Inception Impact Assessment for the initiative... is open for feedback. Today's study has been conducted under... the Commission's 2018 Action Plan on Financing Sustainable Growth, together with the Study on Due Diligence requirements through the supply chain...