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24 Nis 2024

Yazan:
Global Witness

A new chapter is about to start for corporate accountability

The European Parliament today passed a historic law, marking a significant step towards holding big companies accountable for harm they cause to people and the planet...

As the EU is a major player on the global economic stage, the implementation of this law has the potential to create a ripple effect that reaches far beyond its borders...

The new rules will apply to EU companies with over 1000 employees and over €450 million in turnover worldwide, as well as non-EU companies with over €450 million in turnover in the EU.

The implementation of the law will be staggered. The biggest companies in the EU – with over 5,000 employees and €1.5 billion in turnover – will need to be compliant by 2027, followed by companies with 3,000 employees and €900 million in turnover in 2028 and finally companies with at least 1,000 employees and €450 million in turnover in 2029...

If companies don't meet the requirements set out in the law, communities will have the power to take legal action against them in the EU. They can also seek redress or compensation directly from the company, but this wouldn’t prevent them from pursuing legal action if necessary...

While the CSDDD did not deliver everything we hoped for, it is a significant milestone in the fight for corporate accountability and justice for those who have been impacted by corporate harm.

EU countries now have two years to transpose the law into their own legal systems, with the largest companies having to comply with the law from 2027. 

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