EU Member States salvage a deal for more sustainable business practices
Mar 15, 2024

EU Member States salvage a deal for more sustainable business practices

By EJF Staff

While the latest text has severe limitations, the Environmental Justice Foundation is relieved that EU Member States have finally agreed today to adopt the Corporate Sustainability Due Diligence Directive (CSDDD).

Despite obvious weaknesses, the legislation still lays the groundwork for more sustainable business conduct and greater corporate responsibility, as the CSDDD will empower governments to hold large companies to account for damages to the environment or human rights.

However, the Directive’s new scope, which has been narrowed beyond what any of the agreed negotiating mandates had proposed, will severely limit the positive impacts of these new rules, applying only to the largest companies.

Steve Trent, CEO and Founder of the Environmental Justice Foundation, said: “Despite previous attempts to frustrate its adoption by Germany, France, Italy and others, Member States have today been able to salvage a deal, adopting the Directive on corporate sustainability due diligence. In doing so, they acknowledge that this EU law is desperately needed to enshrine responsible business conduct. This is an important step in efforts to protect human rights and the environment, within the EU and across the world. It is crucial for European interests and shows that the bloc is willing to stand on the side of people and our shared natural world.”

“The CSDDD will hold companies to account for environmental and human rights damages in their value chains. It also supports European consumers and businesses, who will benefit from the level playing field it introduces. The European Parliament must now maintain this momentum and adopt this legislation in the coming months.”


Notes to editors

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