European Affairs: FERMA meeting with MEP rapporteur on latest ELD report
The latest report on the Environmental Liability Directive (ELD) will be considered during a session of the Legal Affairs Committee on 19/20 June with a vote scheduled early September. FERMA will suggest possible amendments to the current text to refocus on the initial purpose of the ELD –i.e. to prevent and reduce the number of environmental damages.
On Tuesday 30 May, FERMA met with the office of Laura Ferrara, the Italian Member of the European Parliament in charge of this report published on 8 May. FERMA appreciates the emphasis in the report on promoting a culture of prevention and risk management with possible tax incentives for the companies engaging in risk management and prevention. The report contains, however, several areas of concern for risk managers. Among them are a possible extension of the scope of ELD damages to air or electromagnetic pollution and rewording to the definition of environmental damage to make it more consistent with the rapid evolution of industrial pollutants.
A recommendation for mandatory financial security remains in this report, despite an acknowledgement that the insurance industry offers good capacity. FERMA has not changed its position that this is not necessary or desirable.
In line with our intervention during the public hearing on ELD at the European Parliament on 11 April, we will emphasise the need to preserve the capacity of European organisations to invest so they can modernise the industrial tools of the European economy.
Business organisations raise concerns over country by country reporting proposal
Business organisations including ecoDa, Eurochambres and European Issuers have written to MEPs to raise concerns over the provisions of public country-by-country reporting. MEPs of the Committees on Legal Affairs and on Economic & Monetary Affairs were expected to vote on the report on 30 May 2017. Business argues that making country-by-country reporting public for every company operating in the EU would constitute a clear disadvantage for the European Union as an investment destination.