Consider this question – what is the difference between a T-shirt from Tesco and one from TopShop? Lib Dems will undoubtedly have their own style preferences.

But for Business, Innovation and Skills (BIS) Minister Vince Cable there’s an important distinction. Cable is seeking to weaken proposed EU rules that would require companies to report annually on risks their operations pose to communities and the natural world, such as accidents, pollution and human rights. The new non-financial reporting directive could be a game-changer on a path towards more sustainable production.

It should ensure that a firm like Tesco, as a large company listed on a stock exchange, would have to reveal the full impact of its business – all the way back to the factories, farms and mines that form part of its supply chain. But Cable wants to exclude the non-listed, privately-owned TopShops from these reporting requirements.

This is more than a fashion faux pas. It’s a clear breach of Lib Dem commitments to greater company transparency and robust corporate reporting in the Coalition agreement.

It makes no sense that companies like Tesco and Marks & Spencer would have to reveal whether people or the environment were damaged in the making of their products, while the 80% of UK large companies that are privately owned would not.

Some leading companies, like Philips and IKEA, recognise the vital role of reporting in identifying risks and inefficiencies. Yet still only 6% of large EU companies currently report this information on an annual basis. For the other 94%, clearly the voluntary approach is not working.

Cable is also opposing plans for companies to report by the UN Guiding Principles on business and human rights, despite a Coalition commitment to implement these standards. Former UN business and human rights chief John Ruggie said in a letter to Cable this week that to be truly effective and avoid a split playing-field, the EU rules must apply to all companies, not just listed ones.

The pressure’s also on from thousands of people who have emailed and tweeted in an attempt to ‘convince Vince’ to support a strong EU law.

EU negotiations are now in their final phase. Now, as this video shows, it’s crunch time for Cable to crank up his style and defend Lib Dem principles by supporting a strong law that means all companies come clean about their impacts on people and the environment.

‘The Independent View‘ is a slot on Lib Dem Voice which allows those from beyond the party to contribute to debates we believe are of interest to LDV’s readers. Please email [email protected] if you are interested in contributing.

* Richard Dyer is a campaigner for Friends of the Earth