Eumedion pushes for legal embedding of stakeholder model at European level

News · 05-02-2021

The boards of all European listed companies should be required to balance the interests of all relevant stakeholders when taking their decisions. They should also be obliged to report on how the various interests have been considered in the discussions and decision-making. This follows from the today’s submitted Eumedion response to the European Commission’s consultation document on the contents of the forthcoming proposal for a European directive on sustainable corporate governance and due diligence. 

Eumedion is in favour of incorporating the ‘stakeholder principle’ into European law. This stakeholder principle can be elaborated in more detail at national level, given the specificities of the corporate governance model in individual EU Member States. Eumedion is also in favour of mandatory due diligence rules for listed companies, provided that these are fully in line with international standards, such as those of the OECD and the United Nations. Furthermore, Eumedion suggests some technical amendments to the European Company Law Directive regarding share buybacks and supports the European Commission’s idea to require companies to consider environmental, social and/or human rights expertise in the director’s nomination and selection process. Eumedion is not in favour of additional EU legislation regarding the design and content of executive remuneration policies.

Relevant documents

Eumedion's response to the European Commission's consultation document


European Commission's consultation document on sustainable corporate governance and due diligence