CSDDD: EU's Due Diligence Law Vote Should Drive Supply Chain Sustainability Efforts

April 24 - The European Parliament has today voted to adopt the Corporate Sustainability Due Diligence Directive (CSDDD), following months of negotiations between the European Union (EU) institutions and member states.

"Ensuring that corporations take responsibility for preventing and managing the environmental, labor, and human rights impacts of their supply chains is key to global sustainable development efforts. The adoption of the CSDDD is a step in the right direction", Suzy H. Nikièma, Director of Investment at the International Institute for Sustainable Development (IISD) said.

"However, the watered-down nature of the final directive compared to the original proposal is concerning. Now, only companies with more than 1000 employees and a net turnover of over 450 million EUR annually are within the scope of the rules, compared to 250 employees and a net turnover of EUR 40 million as the threshold for high-impact sectors in the original text.

Due diligence initiatives, such as the CSDDD, will only truly deliver their promised sustainability benefits if they address the unique needs of the suppliers in the countries where most of these requirements will be applied. If we get the implementation right, due diligence regulations should help generate genuine responsible investment in developing countries.

European policy-makers must now focus on providing the technical support and resources necessary for local suppliers in developing countries to comply, which includes making sure that the large international companies in scope of the CSDDD take their share of the responsibility for this crucial work."

Media Contacts

Suzy H. Nikièma, Director of Investment, IISD: [email protected]
Isaak Bowers, Communications Officer, Investment, IISD: [email protected]