"Transposition of the Corporate Sustainability Due Diligence Directive: A practical guide for National Human Rights Institutions"

This guide provides practical guidance on how to engage with policymakers through the transposition of the Corporate Sustainability Due Diligence Directive to advocate for alignment with the UN Guiding Principles on Business and Human Rights and other international business and human rights standards.

On 24 July 2024, the European Union’s long-awaited Corporate Sustainability Due Diligence Directive (CSDDD) entered into force, kickstarting a two-year transposition period during which the Member States will be required to integrate the CSDDD’s obligations into their national laws. The CSDDD creates an obligation for large companies to undertake risk-based due diligence to identify, assess, address and remedy potential and actual adverse impacts on human rights and the environment in connection with a company’s activities and broader business operations.

The final text of the CSDDD is a result of a lengthy, highly politicised negotiation process which has left gaps and at times ambiguous language that could be clarified in transposition laws and/or through additional measures, such as guidance.

As independent state actors with human rights expertise, national human rights institutions (NHRIs) are well-placed to engage in the transposition process to encourage alignment with the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises and bring attention to those areas in the Directive text that still require clarification. 

This Transposition Guide points to the key areas where NHRIs can engage with their policymakers in the transposition:

1. Clarifying core due diligence concepts to ensure that they are accurately captured in the transposition laws and are as far as possible aligned with the UNGPs and OECD Guidelines.
2. Resolving ambiguities in the language of the Directive (e.g., in respect of the material scope, the civil liability regime and the due diligence required on downstream impacts).
3. Encouraging ambitious transposition laws (e.g., expanding the personal scope, broadening the material scope, expanding the downstream).
4. Engage with the design of Supervisory Authorities and implementation guidance. [...]