After the controversial inclusion of gas and nuclear energy as sustainable economic activities under the Taxonomy Regulation last year, the concretisation of the regulation is picking up speed again. Currently, the EU Commission is discussing the further development and expansion of environmentally sustainable aspects of the classification system. Social sustainability is still not an issue.

After numerous ad hoc reactions to the horrendous price development as a symptom of the current energy crisis, the longed-for legislative proposal to reform the EU electricity market followed in March. Little has remained of the fundamental revision that was promised. AK demands that energy supply be legally established as a central part of public services. Security of supply, affordability and sustainability in the sense of decarbonisation must be legally anchored as overriding goals.

The Benchmarking Working Europe Report 2023 highlights social vulnerabilities and challenges in Europe. The EU is currently trying to manage four transitions simultaneously, with conflicting goals and limited vision. However, a transformative and ambitious social transition is needed to break the current crisis cycle. Researchers from the European Trade Union Institute (ETUI) and representatives from the European Commission and the European Trade Union Confederation (ETUC) discussed this on the occasion of the publication of the report.

To support climate neutrality by 2050, a proposal for a Net-Zero Industry Act has recently been presented by the EU Commission as part of the Industrial Plan for the Green Deal. To ensure that the EU remains competitive and does not fall behind economies such as the US or China concerning the green transition, an effective European industrial policy for renewable energy and climate-neutral production is needed.

For better comprehensibility, comparability and transparency, in the future companies will have to disclose sustainability information on the basis of new uniform EU reporting standards. The aim, among others, is to raise the awareness of corporate management regarding their social and ecological responsibility. AK welcomes the improvements; however, they must not be watered down in the current implementation process.

The EU Corporate Sustainability Reporting Directive (CSRD) entered into force in January 2023 and paves the way for a realignment of European sustainability reporting. Mandated by the Commission, the European Financial Reporting Advisory Group (EFRAG) has developed new uniform and mandatory European Sustainability Reporting Standards (ESRS), which are to be adopted into EU law by a delegated act of the Commission in June 2023. From then on, the ESRS should serve as a new framework for companies to report on their performance in terms of environmental, social and governance issues.

Although the contraction of the EU economy predicted in autumn has been averted, headwinds persist to blow, especially against workers. The high price level is a burden on people and economic development remains sluggish. There is also great uncertainty due to the war and geopolitical tensions. Against this background, an active countercyclical economic policy is particularly important.

The European Single Market is celebrating its 30th anniversary, but in practice the EU's promise of prosperity has turned into a hard-fought battle for the lowest standards, which is often fought on the backs of workers. How can we succeed in transforming the EU into a truly social union, effectively fighting wage and social dumping and guaranteeing fair labour mobility?

In February 2022, the EU Commission presented its proposal for a directive on corporate due diligence. The new EU law is intended to oblige companies to take responsibility with regard to social and environmental impacts in their supply chain. The Council of the EU agreed on a general approach on 1 December 2022 and votes in the EU Parliament are to be finalised before the summer recess.

The Industrial Plan covers several policy areas and contains a variety of initiatives. The promotion of net-zero industry is to contribute to achieving the goals of the Green Deal. In this sector of future, European industry is to be given a central role internationally. It is now important to examine the plan closely for its social fairness, both in the EU and internationally.