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2 Jan 2024

EU: Businesses, trade unions & NGOs jointly call on legislators to reach agreement on effective final CSDDD

Photo: sinonimas, Getty Images via Canva

Ahead of the last political trilogue on the Corporate Sustainability Due Diligence Directive on Wednesday 13 December 2023, a group of businesses including IKEA, ALDI SÜD, Novo Nordisk, Tchibo, L'Oreal and ABN AMRO, trade unions and civil society organisations, jointly urged EU co-legislators to reach a political agreement in view of adopting an effective final law.

Delivering an EU-wide standard on responsible business: a joint call from business, trade unions and civil society organisations

[...] This multistakeholder statement comes at the end of a four year long legislative process throughout which businesses, industry associations, trade unions, civil society organisations, and a wide variety of stakeholder groups have engaged policymakers to inform the discussions. While we hold diverging views on certain aspects of the law, we are aligned in recognising the necessity of a common EU wide legal framework, as part of a smart and coherent mix of policy and legislative measures. We therefore urge the co-legislators to reach a political agreement in view of adopting the final version of the law.

Balancing the need for ambitious standards with the effectiveness and efficiency of the law is complex. We commend the co-legislators' efforts in current negotiations to ensure that the CS3D follows a risk-based approach and builds on existing globally recognised due diligence standards [...]. Key elements of this risk-based approach include the recognition of different modes of involvement with adverse impacts and allowing companies to prioritise the most severe and likely ones. We consider CSRD-aligned climate transition plans a relevant element of this Directive.

It is important that the Directive integrates stakeholder engagement as a critical component of effective due diligence, recognises the role of trade unions and worker representatives, and promotes effective collaboration between companies [...].

The Directive aims to harmonise requirements for companies to carry out due diligence in their own operations, subsidiaries and value chains, thereby ensuring an EU-wide level playing field and avoiding market fragmentation. This common standard should be effectively enforced, recognising the need for a balanced combination of administrative enforcement and civil liability, as well as access to justice measures.

The CS3D should mark the beginning of delivering better outcomes for people and the planet at scale, and in doing so be a key component of a common and future-fit European framework for a resilient economy. Businesses, industry associations, trade unions and civil society organisations look forward to the final outcome of the negotiations. We stand ready to implement the requirements and will remain engaged in policy discussions on mandatory sustainability due diligence in the years to come.

Full statement & signatories (PDF)

Read the joint call "Delivering an EU-wide standard on responsible business" and full list of signatories

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