Policy Research
The Research, Analysis and Strategy Institute (RAS Institute) provided strategic advice to the European Economic and Social Committee (EESC) in the comprehensive feasibility study on the creation of a Public EU Rating Agency for Environmental and Social Sustainability and Human Rights in the Business Context.
This work represents a major contribution to the evolving EU policy landscape on sustainability, responsible business conduct, and human rights, providing a structured and evidence-based foundation for future institutional development.
The study explores the feasibility and design of a new EU-level body tasked with enhancing transparency, consistency, and legal certainty in sustainability and human rights reporting across the Single Market.
It proposes a clear and ambitious mandate for the Agency, including:
Supporting corporate sustainability reporting processes
Designing standards and frameworks for sustainability assessments
Supporting the licensing and oversight of auditors
Acting as a centralized EU repository for environmental, social, and human rights data
Processing and analysing data to identify discrepancies and generate policy-relevant insights and recommendations
Commissioning further studies to support evidence-based policymaking
Supporting EU and International Frameworks
A central role of the proposed Agency would be to facilitate the implementation and consistent application of key EU legislation and global standards.
These include: EU frameworks such as the Green Deal and Climate Law, the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD), and the Non-Financial Reporting Directive (NFRD)
Sector-specific regulations including the Conflict Minerals Regulation, Battery Regulation, Deforestation Regulation, and Forced Labour Product Ban
Strategic initiatives under the European Raw Materials Act
International standards such as the UN Guiding Principles on Business and Human Rights, the OECD Guidelines for Multinational Enterprises, and the ILO core conventions.
Through this alignment, the Agency would play a critical role in bridging regulatory requirements and practical implementation for businesses operating globally.
The study recommends establishing the Agency as a decentralized EU agency, reflecting its role in supporting policy implementation rather than managing EU funding programmes.
To ensure effectiveness and broad engagement:
A hybrid governance model is proposed, combining EU-level coordination with national contact points (NCPs)
The Agency would focus on supporting and training NCPs, rather than acting as a single centralized interface for companies
Strong emphasis is placed on multi-stakeholder involvement, including civil society, business organizations, trade unions, and public authorities, to ensure transparency and accountability
Survey results conducted as part of the study show strong stakeholder backing:
74% of respondents rated the Agency as moderately to very useful
68% supported the proposed hybrid governance model
The study provides a clear financial roadmap for the establishment of the Agency:
Initial setup costs are estimated at approximately €10 million
Operational costs are projected at €21.8 million in the first year, rising to €41.3 million by year three as activities scale
It also explores options for institutional integration, suggesting that—if appropriate—the Agency could be linked to existing EU bodies such as the European Union Agency for Fundamental Rights or the European Environment Agency.
The study is developed in the context of an evolving EU regulatory environment, including the European Commission’s 2025 Work Programme and proposed Omnibus simplification package on sustainability reporting and due diligence. These developments may influence the pace and scope of implementation, making the need for coherent, centralized guidance and data even more critical.