Dutch political party says European sustainability rules threaten competitiveness

The Dutch political party, VVD, has sent a strong message to Brussels. On June 12, members of parliament Thom van Campen and Claire Martens-America submitted a motion to the House of Representatives stating that two European directives concerning sustainability hinder European businesses from competing with businesses outside the EU, such as those in China and the US.

The directives in question are the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD). The motion urged the Dutch government to advocate for the withdrawal of these directives. The Dutch newspaper Het Financieele Dagblad (FD) was the first to report on this.

The CSRD requires large companies to report extensively on the sustainability of their business operations. The CSDDD (also known as the ‘anti-blind eye law’ or ‘supply chain responsibility and liability’) holds companies accountable for abuses in their global supply chains. Both directives aim to promote corporate social responsibility, but according to the motion’s authors, "these rules threaten European competitiveness and put unnecessary pressure on businesses".

The FD noted that the motion represents a significant shift in the VVD’s stance, as the party previously supported European sustainability directives. Critics, including civil society organisations, worry that such a position allows companies to ignore issues like child labour, pollution, and poor working conditions in their production chains.

Netherlands joins France and Germany

The Netherlands follows other EU member states that have opposed the legislation, including Germany and France. Last month, French president Emmanuel Macron joined German CDU party leader Friedrich Merz in calling on the European Union to abolish a directive on corporate sustainability.

Whether the motion will garner enough support in the House of Representatives to influence government policy towards Brussels remains to be seen. The vote is scheduled for Tuesday, June 17. The discussion regarding the balance between corporate social responsibility and economic competitiveness is once again high on the political agenda.