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Shift – the leading non-profit centre of expertise on the UN Guiding Principles on Business and Human Rights (UNGPs) – welcomes the provisional political agreement reached this week between the European Commission, Council and Parliament on the final outline of the EU Corporate Sustainability Due Diligence Directive (CS3D)...
Throughout the debate, Shift and many other stakeholders have CONSISTENTLY HIGHLIGHTED key features of a final Directive that are central to alignment with the international due diligence standards – the UNGPs and OECD Guidelines for Multinational Enterprises. The positions of the institutional negotiators have increasingly built on those standards as the process has moved forwards. This political agreement now ensures that the new due diligence duty will be grounded in a risk-based approach...
The duty will be enforced through both civil liability – which will require a causal connection between the company’s actions or omissions and a harm – and administrative supervision. The agreement provides that the Directive will include access to justice measures in relation to representative actions, limitation periods and disclosure of evidence. It also provides that companies will be required to put in place climate change transition plans that align with the Paris Agreement.
EU Member States and the Commission are expected to adopt accompanying policy measures and issue authoritative guidance. These should draw on the past decade of interpretation and practical implementation of the international standards to ensure that the CS3D delivers on its promise of better outcomes for affected stakeholders and the environment.
However, there are some critical gaps between the Directive and the UNGPs where there is a need to improve alignment in the coming years. In these areas, it will be important that companies continue to look to the international standards to inform their approach. In particular:
while the duty covers all impacts arising in a company’s ‘upstream’ business relationships (including design), it covers some but not all‘downstream’ impacts. It does cover those arising from distribution, transport and waste management, but impacts arising from sale are not explicitly covered;
while the duty applies to companies across all sectors of the real economy, it will not apply to anydownstream business relationships in thefinancial sector. However, a review clause requires this to be revisited in due course and financial institutions will be expected to adopt climate plans;
while the duty will apply to the largest companies headquartered or operating in the EU, and additional companies in some higher-risk sectors, this is only a sub-set of the companies that are already required by new EU reporting standards to disclose how they are managing their sustainability impacts.
It will be essential for the EU to revisit these aspects of the scope of the legislation in the coming years; at the same time, they do not negate the significance of the political agreement on the core of the new due diligence duty.
This publication aims to give an overview of the various EU regulatory initiatives of relevance to business and human rights in force or under development by the EU, how they align with international frameworks, such as the UN Guiding Principles on Business and Human Rights, and how the various pieces fit in the puzzle.
The European Parliament has adopted new laws to rein in companies for human rights abuses in global supply chains. This will have far-reaching impacts on Switzerland’s largest companies.
This publication by the Danish Institute for Human Rights summarises the key elements of the CSDDD, considers steps for effective implementation, and recommends strategies for aligning with the UNGPs
Overview of business voice in support of mandatory due diligence, notably the EU's Corporate Sustainability Due Diligence Directive (CSDDD), since February 2024
Ahead of the European Parliament's final vote on the legislation on 24 April, more than 90 large companies, SMEs and networks including Maersk, Cisco, Nokia, H&M Group, Scania and Ritter Sport have united to endorse the Corporate Sustainability Due Diligence Directive (CSDDD) and call on EU decision makers to now finally adopt it.
Stéphane Brabant, Senior Partner at Trinity International AARPi, and Eugénie Denat, summarise the most essential provisions of the CSDDD in order to reassure businesses about the application of the directive and its content.
In this briefing, ECCJ, CAN Europe, Reclaim Finance, Frank Bold, ECCHR and ClientEarth address some of the main myths around the CSDDD and lay out the importance of this law in finally holding European corporations accountable.
The preliminary endorsement by member states of the Forced Labour Regulation ramps up pressure on wavering countries to also endorse CSDDD on Friday, reducing the political room to justify continued resistance to the law.
In March 2024, over 50 representatives from businesses including Ferrero, Mondelez Italia and Mars, associations and NGOs, urged the Italian Government to support the CSDDD ahead of another - and potentially the last - chance to secure EU Council endorsement. This statement joins a chorus of voices from across large and small businesses, associations, academia, and civil society in support of the CSDDD.
EU negotiators went back to the drawing board over the weekend to bulletproof the text of the bloc’s corporate due diligence law (CSDDD) in the hope of securing a final deal by Friday (15 March) at the latest, Euractiv understands.
Failure to agree an ambitious EU Corporate Sustainable Due Diligence Directive will lead to greater fragmentation of corporate accountability legislation, fail to protect lives and the environment, and make life harder for companies and investors
The delay in approving a new EU directive does a disservice to companies that need legal certainty, says chair of the UN working group on business and human rights Robert McCorquodale
Ahead of the European Union vote on whether to adopt the Corporate Sustainability and Due Diligence Directive (CSDDD), ICAR, joined by 69 other partner organizations around the world, sent the following letter urging European countries to vote in favor of a strong due diligence directive.
The Uganda Consortium on Corporate Accountability (UCCA) released a statement to express their disappointment over the Committee of the Permanent Representatives of the Governments of the Member States to the European Union (COREPER) failure to reach a final agreement on Corporate Sustainability Due Diligence Directive (CS3D).
While an attempt was made to approve the directive in Council today, these efforts were reportedly derailed further by a last minute effort by France to significantly scale back the scope of the new rules to apply only to companies with more than 5,000 employees, instead of the proposed 500 employee threshold.
The joint civil society statement highlights the vital nature of the EU sustainability legislation - necessary and overdue to trigger the change in business conduct - and the need to maintain collective pressure to avoid compromising key principles in subsequent decisions.
At the last minute, France made an impossible demand of the negotiators, calling into question the compromise agreement reached after several years of hard work by the Member States, the European Parliament, and the Commission, says ECCJ
"It is precisely in times of political crisis and economic challenges that defending the universal rights and fundamental values that unite us can strengthen the foundation for a brighter future", the statement says.
Non-exhaustive examples showing how questions of effectiveness, supply network/value chain complexity, and feasibility for companies have been addressed by the Corporate Sustainability Due Diligence Directive (CSDDD).
The CSDDD is a world-leading initiative to put internationally agreed standards of corporate behaviour from the UN and OECD into law, write MEP Heidi Hautala and BHR experts Olena Uvarova and Ihor Konopka.
In a joint statement, 26 companies and networks urgently call on the German Chancellor to agree to the political agreement on the Corporate Sustainability Due Diligence Directive (CSDDD). ALDI SÜD, Bayer, Primark, FRoSTA, KiK, Mars, Tchibo, VAUDE, Ritter Sport and the Global Network Initiative are among those affirming business support for the text agreed in December 2023.
In a blog post, a group of BHR scholars and practitioners explain why the CSDDD is needed for businesses and human rights and address some of the most common misconceptions about the text.
The rapporteur wrote a letter to Italian Prime Minister Giorgia Meloni to express her serious concern at reports Italy may block the EU’s proposed new rules on human rights and environmental due diligence for companies. She called on the Italian Government to fully support the proposed Directive.
The adoption of the Directive would represent a significant advance in the global efforts to respect, protect, and fulfill children’s rights and human rights, support gender equality and address environmental challenges, as well as boost efforts to create a level playing field for businesses, the statement says.
Businesses (including Ferrero) as well as other stakeholders call on the Italian Government to support the Corporate Sustainability Due Diligence Directive.
WBCSD brings together over 225 of the world’s largest, most forward-thinking companies working together to accelerate the transition to a sustainable world.
Non-exhaustive examples on protections and opportunities for small and medium-sized enterprises (SMEs) from the Corporate Sustainability Due Diligence Directive (CSDDD) Trilogue compromise agreement
In the context of ongoing regulatory developments and the expected vote on the European Union Corporate Sustainability Due Diligence Directive, the UN Global Compact reiterates its support for mandatory human rights due diligence.
UN High Commissioner for Human Rights Volker Türk on Tuesday urged EU leaders to approve a ground-breaking agreement on business and human rights, amid reports that support for the measure may now be in question in the European Council.
This week, the Council of the European Union can be a game changer, by adopting the compromise text resulting from political trialogue negotiations last December on the Corporate Sustainability Due Diligence Directive (CSDDD). CIDSE and COMECE urge the EU Member States to support the EU Corporate Sustainability Due Diligence Directive.
European Union countries on Friday postponed a decision on a proposed law which would require large companies to check if their supply chains use forced labour or cause environmental damage after Germany indicated it would abstain.
The Corporate Sustainability Due Diligence Directive (CSDDD) has been taken off the agenda of Friday’s meeting of EU ambassadors, as it was not expected to reach a majority among EU countries.
18 doctoral researchers from the International Doctorate Programme on Business and Human Rights at Friedrich-Alexander-Universität Erlangen-Nürnberg in Germany urge all EU member state governments to vote in favor of the Corporate Sustainability Due Diligence Directive (CSDDD).
The crucial meeting on 9 February will determine whether the EU can secure a law that benefits companies, markets, affected communities, and the environment alike.
70 companies and networks, including Nokia, Novo Nordisk, Ørsted, Vattenfall and Bestseller, call on their governments to vote in favour of the initiative at the upcoming Council meeting.
The Free Democratic Party is blocking a major EU business policy initiative at the last minute. Germany’s abstention reflects the earlier reluctance of its coalition partners to push back harder against efforts by the liberals to kill the law.
Ahead of the EU Council’s vote on the European Corporate Sustainability Due Diligence Directive (CSDDD), over 300 business and human rights practitioners joined a call to support the CSDDD.
As the Corporate Sustainability Due Diligence Directive (CSDDD) nears a crucial juncture in its legislative and political journey, recent developments in Germany have intensified the debate surrounding this EU milestone in holding corporations accountable.
Ahead of a crucial vote on Friday on new landmark European Union business legislation that would help safeguard human rights, which the German government is now threatening to withdraw its earlier support for, Amnesty International calls for all member states to approve this legislation.
Gathered within the Business for a Better Tomorrow coalition, large, medium-sized, and small businesses, argue undermining the compromise would be a strategic mistake for the European economy and would create legal uncertainty.
The German Institute for Human Rights urges the German Government and all other EU member states to vote in favour of the EU Corporate Sustainability Due Diligence Directive (CSDDD) in the final vote on 9 February.
AIM, which represents manufacturers of branded consumer goods in Europe, urges EU member states to support Corporate Sustainability Due Diligence Directive compromise agreement.
As the vote on the European Corporate Sustainability Due Diligence Directive (CSDDD) approaches this Friday, UNI Global Union is calling on governments to support this legislation, which is key to embedding human rights across companies’ operations and value chains as well as across economies.
On February 6, 2024, the Institutional Investors Group on Climate Change (IIGCC), the Principles for Responsible Investment (PRI), Eurosif - the European Sustainable Investment Forum, the Interfaith Center on Corporate Responsibility (ICCR), and the Investor Alliance for Human Rights (IAHR) released a statement reiterating their support for the agreement reached between the Council and European Parliament on the Corporate Sustainability Due Diligence Directive (CSDDD).
According to the trade unionists Nasir Mansoor and Zehra Khan, even if there are some areas that need to be improved, the German Supply Chain Act is already having a positive impact and is protecting human rights on the ground - as are those companies that are willing to address human rights in their supply chains.
Statement by legal professionals from France, Germany, Italy, Spain, Poland, the Netherlands and Portugal who work together to develop European Model Clauses (EMC) in the framework of the future European Corporate Sustainability Due Diligence Directive (CSDDD)
Chancellor Scholz needs to rule on the matter and decide that his government supports the law, despite resistance from the FDP, writes Juliane Kippenberg from Human Rights Watch.
Mary Robinson, Chair of The Elders, and Phil Bloomer, Executive Director, BHRRC, reflect on the massive leap forward made by the EU last week, with its ground-breaking political deal to better tackle human rights abuses and environmental harms caused by business. Globally, this is the first attempt to enshrine the international standards set by the UN and the OECD in laws across a major economic bloc, and with legal liability and administrative penalties for companies that do not comply.