EUROPEAN COMMISSION
DAILY NEWS
Brussels, 31 July 2023
Sustainable Finance: Commission adopts the European Sustainability Reporting Standards
The Commission has today adopted the European Sustainability Reporting Standards (ESRS) for use by all companies subject to the Corporate Sustainability Reporting Directive (CSRD). This marks another step forward in the transition to a sustainable EU economy.
Mairead McGuinness, Commissioner for Financial Services, Financial Stability and Capital Markets Union, said: “The standards we have adopted today are ambitious and are an important tool underpinning the EU's sustainable finance agenda. They strike the right balance between limiting the burden on reporting companies while at the same time enabling companies to show the efforts they are making to meet the Green Deal Agenda, and accordingly have access to sustainable finance.”
The standards cover the full range of environmental, social, and governance issues, including climate change, biodiversity and human rights. They provide information for investors to understand the sustainability impact of the companies in which they invest. They also take account of discussions with the International Sustainability Standards Board (ISSB) and the Global Reporting Initiative (GRI) in order to ensure a very high degree of interoperability between EU and global standards and to prevent unnecessary double reporting by companies.
The reporting requirements will be phased in over time for different companies.
A detailed Q&A will be available shortly.
(For more information: Arianna Podesta – Tel.: +32 2 298 70 24; Aikaterini Apostola – Tel.: +32 229 87624)
Digital Markets Act: Commission seeks views regarding template for reporting consumer profiling techniques used by platforms
Today, the Commission is launching a consultation on a draft template for the description of consumer profiling techniques, which gatekeepers apply to their core platform services. Gatekeepers are obliged to submit the description to the Commission as part of their obligations under the Digital Markets Act (DMA). All interested parties have six weeks to submit on EUSurvey their views on the draft, i.e. until 15 September 2023.
Gatekeepers collect and accumulate large amounts of data from users, which limit the possibility for potential entrants and start-ups to compete with them. Transparency on profiling techniques should help prevent deep consumer profiling from becoming the industry standard, allowing competitors to differentiate themselves by offering improved privacy guarantees.
The draft template specifies the minimum information that the Commission expects gatekeepers to provide to enhance transparency and accountability of their profiling techniques. The description must be independently audited, and gatekeepers must publish a meaningful and non-confidential overview of it. Both the description and the overview must be updated annually.
The aim of the consultation is to gather feedback from stakeholders on the draft template to ensure that all relevant aspects of consumer profiling are considered. This will ensure transparency and facilitate the supervision by the Commission and the competent authorities. In particular, the Commission welcomes feedback from potential gatekeepers, consumer interest groups, data experts, relevant national competent authorities, platforms' business users such as advertisers, and auditors active in relevant areas.
The Commission will designate the gatekeepers under the DMA by 6 September 2023. Designated companies will then have six months to comply with the list of obligations and prohibitions in the DMA.
(For more information: Arianna Podesta – Tel.: +32 2 298 70 24; Sonya Gospodinova – Tel.: +32 2 296 69 53; Nina Ferreira – Tel.: +32 2 299 81 63; Thomas Regnier – Tel.: +32 2 299 10 99)
EU and the Philippines to start scoping exercise for a free trade agreement
Today, the EU and the Philippines announced their intention to explore the relaunch of negotiations for an ambitious, modern, and balanced free trade agreement (FTA) – with sustainability at its core. The EU and the Philippines will shortly kick off a bilateral ‘scoping process' to assess to which extent they share a mutual understanding on the future FTA. If this process concludes successfully, and after consultations with the Member States, the EU and the Philippines would be in a position to resume FTA negotiations.
Ursula von der Leyen, Commission President, said: “The Philippines is a key partner for us in the Indo-Pacific region, and with the launch of this scoping process we are paving the way to taking our partnership to the next level. Together, we will realise the full potential of our relationship, creating new opportunities for our companies and consumers while also supporting the green transition and fostering a just economy.”
Following the resumption of FTA talks with Thailand earlier this year, this announcement confirms the key importance of the Indo-Pacific region for the EU trade agenda, paving the way for deeper trade ties with another vibrant economy in South-East Asia and further strengthening the EU's strategic engagement with this burgeoning region.
The EU aims for a comprehensive FTA with the Philippines that includes ambitious market access commitments, swift and effective sanitary and phyto-sanitary procedures, as well as the protection of intellectual property rights, including Geographical Indications. Sustainability will also be at the heart of this agreement, with robust and enforceable disciplines on Trade and Sustainable Development (TSD). These will be in line with the Commission's TSD review Communication of June 2022, supporting high levels of protection for workers' rights, for the environment, and the achievement of ambitious climate goals.
The EU and the Philippines already have well-established trade relations, with clear potential for an even closer relationship:
Background
The Philippines currently enjoy trade preferences under the EU's Generalised Scheme of Preferences + (GSP+), a special incentive arrangement for sustainable development and good governance which grants duty-free access to the EU market for two-thirds of tariff lines. This enhanced access is conditional on the Philippines implementing a range of international conventions covering issues such as human and labour rights, good governance, and environmental protection. The EU will continue to monitor the Philippines' compliance with its international obligations in these areas and pursue its ongoing dialogue to encourage further improvement.
The Philippines is among the fastest growing emerging economies in the world, recording the 2nd highest economic growth in ASEAN with 7.6% GDP growth in 2022. This high economic growth exemplifies a promising growth trajectory and increased economic potential for the Philippines as an important trading partner. Moreover, the Philippines has major reserves of critical raw materials, including nickel, copper, and chromite, which are vital for the manufacture of green technologies. Combined with the Philippines' renewed efforts to harvest its renewable energy potential and recent liberalisation for foreign investors in the sector, the Philippines is an important partner in the green transition.
The EU and the Philippines first launched negotiations for an FTA in 2015. The last negotiating round took place in 2017 and negotiations have since been on hold. On 30 June 2022, the new administration assumed office and has shown willingness to engage with the EU on key issues of importance.
The 2021 EU Indo-Pacific Strategy further confirmed the EU's longstanding interest in resuming FTA negotiations with the Philippines. The EU already has state-of-the-art FTAs in place with two ASEAN countries (Singapore and Vietnam), is negotiating an FTA with Indonesia, will soon resume FTA negotiations with Thailand, and is currently carrying out a scoping exercise with Malaysia.
For More Information
EU-Philippines trade relations
Quote(s)
The Philippines is a key partner for us in the Indo-Pacific region, and with the launch of this scoping process we are paving the way to taking our partnership to the next level. Together, we will realise the full potential of our relationship, creating new opportunities for our companies and consumers while also supporting the green transition and fostering a just economy.
Ursula von der Leyen, President of the European Commission - 31/07/2023
The relaunch of our negotiations for a trade deal with the Philippines would be a major step in the direction of a prosperous new partnership. I look forward to a successful scoping exercise. A modern, comprehensive free trade agreement would open new opportunities for both sides, strengthen our supply chains, and promote sustainable trade. Moreover, coming hot on the heels of our relaunched trade negotiations with Thailand, it shows how serious we are about strengthening our ties with the booming Indo-Pacific region.
Valdis Dombrovskis, Executive Vice-President and Commissioner for Trade - 31/07/2023
Global Gateway: President von der Leyen launches Green Economy Team Europe initiative in the Philippines
During her visit to Manila today, President of the European Commission Ursula von der Leyen and President Ferdinand Marcos from the Philippines launched the Team Europe Initiative on Green Economy under Global Gateway, with a Team Europe contribution of €466 million.
President of the European Commission, Ursula von der Leyen, said: “Global Gateway, the EU's investment strategy for the world, will support the Philippines on its path to a sustainable future. We will invest in the transition to a circular economy and the generation of green energy. And we will also provide expertise, training and tech transfers, because this is the way to empower local communities, and that is what the EU cares about. ”
The Team Europe Initiative on Green Economy will develop an industry-led alternative model to the current plastic waste management approach, leading to more sustainable plastic value chains and a reduction of plastic waste and marine litter.
In close cooperation with the Philippines authorities, the initiative will help to develop a circular economy policy, in particular tackling plastic waste, to complement the national strategy to combat marine litter.
A policy dialogue platform at government level will promote the circular economy, renewable energy and energy efficiency. There will be capacity building for the Department of Energy and other key stakeholders to support the clean energy agenda. New private energy sector investments focusing on the mitigation of climate change will be identified.
The Team Europe initiative
This Team Europe initiative brings together the European Commission, France, Spain, Germany and Finland. Austria, Netherlands and Sweden will contribute with expertise and technology transfer.
The Team Europe contribution to the Initiative is €466 million. The EU budget is bringing €64 million (60 million from the Green Economy programme and €4 million from EFSD+ Blending). EU Member States will contribute the remaining funding and will also contribute with expertise.
The Team Europe initiative will work with a range of stakeholders including local governments, manufacturers, importers, suppliers, environmental, trade and industry associations, and consumers, who all play a role in reducing plastic waste and in combatting marine litter.
It will support the development of green policies, including the National Circular Economy Strategy. On marine litter, for example, the initiative will support the streamlining of existing primary and local legislation and include capacity building for central and local government institutions.
The Initiative will also support the development of an information system for the collection and reporting of data as well as awareness raising activities.
The possibilities for development of new sanitary landfills and alternative means of waste treatment, such as co-processing of waste in cement plants and waste-to-energy, will also be explored.
The initiative will create better conditions for the private sector investment and innovation, focusing on supporting businesses of all sizes to have greener supply chain and production processes.
The innovative programme will use comprehensive tools to improve waste management and modes of production and consumption, and will be implemented by Gesellschaft für Internationale Zusammenarbeit, United Nations Development Programme, International Finance Corporation (World Bank) and Expertise France.
Following the announcement by President von der Leyen, this project will also be showcased at the Global Gateway Forum in Brussels on 25-26 October 2023.
Global Gateway
*Updated on 31/07/23, at 7:50 CEST
Global Gateway, the EU’s investment strategy for the world, will support the Philippines on its path to a sustainable future. We will invest in the transition to a circular economy and the generation of green energy. And we will also provide expertise, training and tech transfers, because this is the way to empower local communities, and that is what the EU cares about.
Working together with the Philippines authorities we are developing a policy for a circular economy. A reduction in plastic waste and sustainable plastic value chains will have a positive impact on local people, as there will be less litter pollution on land, in the rivers and in the sea. Working with the public and private sector, the transition towards a circular economy can promote investment and create green jobs.
Jutta Urpilainen, Commissioner for International Partnerships - 31/07/2023
The EU has a particularly strong engagement for protection of the environment. We know that this is a top priority for The Philippines too. Through this partnership, we are delighted to bring European investments and expertise to support the development of a circular economy in the Philippines. We are working together to face our common challenges. France, which has pioneered the fight against plastic waste over the past years, is proud to take part in this initiative.
French secretary of state for development and international partnerships Chrysoula Zacharopoulou - 31/07/2023
Antitrust: Commission sends Statement of Objections to Pierre Cardin and its licensee Ahlers over distribution and licensing practices for clothing
The European Commission has informed Pierre Cardin and its licensee Ahlers of its preliminary view that the companies may have breached EU antitrust rules by restricting cross-border sales of Pierre Cardin-licensed clothing, as well as sales of such products to specific customers.
Pierre Cardin is a French fashion house, which licenses its trademark for the manufacture and distribution of its clothing. German clothing manufacturer Ahlers is the largest licensee of such clothing in the European Economic Area (‘EEA').
The Commission has concerns that, for more than a decade, Pierre Cardin and Ahlers entered into anticompetitive agreements and coordinated to restrict the ability of other Pierre Cardin licensees and their customers to sell Pierre Cardin-licensed clothing, both offline and online: (a) into Ahlers' EEA licensed territories; and/or (b) to low-price retailers (such as discounters) offering lower prices to consumers in such territories.
The Commission's preliminary view is that Pierre Cardin and Ahlers agreed to restrict sales by other licensees (a) into Ahlers' licensed territories; and/or (b) to low-price retailers in such territories.
The Commission preliminary found that the ultimate objective of such coordination between Pierre Cardin and Ahlers was to ensure Ahlers' absolute territorial protection in the countries covered by its licensing agreements with Pierre Cardin in the EEA.
If the Commission's preliminary view were confirmed, the companies' behaviour would violate EU rules that prohibit anticompetitive agreements between companies (Article 101 of the Treaty on the Functioning of the European Union (‘TFEU') and Article 53 of the EEA Agreement).
Sending a Statement of Objections does not prejudge the outcome of an investigation.
Article 101 of the TFEU and Article 53 of the EEA Agreement prohibit agreements between undertakings and decisions of associations of undertakings that prevent, restrict or distort competition within the EU's Single Market.
As part of its investigation of suspected anti-competitive practices covering the EU, on 22 June 2021 the Commission carried out unannounced inspections in the sector of manufacturing and distribution of clothing. In January 2022, the Commission opened formal proceedings into possible anticompetitive conduct by Pierre Cardin and Ahlers.
A Statement of Objections is a formal step in Commission investigations into suspected violations of EU antitrust rules. The Commission informs the parties concerned in writing of the objections raised against them. The addressees can examine the documents in the Commission's investigation file, reply in writing and request an oral hearing to present their comments on the case before representatives of the Commission and national competition authorities. Sending a Statement of Objections and opening of a formal antitrust investigation does not prejudge the outcome of the investigation.
If the Commission concludes, after the parties have exercised their rights of defence, that there is sufficient evidence of an infringement, it can adopt a decision prohibiting the conduct and imposing a fine of up to 10% of each of the companies' annual worldwide turnover.
There is no legal deadline for bringing an antitrust investigation to an end. The duration of an antitrust investigation depends on a number of factors, including the complexity of the case, the extent to which the undertakings concerned cooperate with the Commission and the exercise of the rights of defence.
For more information
More information on this case will be available on the Commission's competition website, in the public case register under the case number AT.40642.
Consumers in the EU must be able to shop around for the best deals. Our concern is that the licensing and distribution practices of Pierre Cardin and Ahlers, its largest licensee, may have prevented consumers from benefiting from lower prices and a greater choice of clothing.
Margrethe Vestager, Executive Vice-President in charge of competition policy - 31/07/2023
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Athanasios ATHANASIOU
Press Officer / Political Reporter
European Commission
Representation in Cyprus
EU House, 30 Vyronos Avenue, 1096 Nicosia
Tel: +357 22 81 75 76 Mob: +357 99 363753
Twitter: @aathans