Sustainability Agreements in the European Commission’s Draft Horizontal Guidelines

Abstract

The European Commission has published its Draft Horizontal Guidelines (DHG), which include an assessment of “sustainability agreements”. The dedicated paragraphs enlarge the scope for the consideration of sustainability benefits. We review the various ways how such an extended consideration of sustainability benefits can take place, such as the introduction of safe harbours for certain sustainability agreements or the introduction of the concept of “collective benefits”. In its balancing of effects, the DHG still remain firmly grounded in a consumer welfare analysis. We discuss possible problems that may arise from the broad conception of sustainability, notably in combination with the acknowledgement of “collective benefits”. We propose an alternative.

Keywords: Sustainability, Sustainability Benefits, Collective Benefits