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Jul 25, 2024

Press Comment: Implementation is the key for a successful supply chain law, says Environmental Justice Foundation

By EJF Staff

Today, the Environmental Justice Foundation (EJF) welcomes the entry into force of the Corporate Sustainability Due Diligence Directive (CSDDD), the culmination of years of negotiations.

Steve Trent, CEO and Founder of the Environmental Justice Foundation, said: "Our investigations have repeatedly uncovered shocking environmental and human rights abuses in European supply chains, which all too often go unsanctioned and unremedied. This Directive is a critical step forward and positions the EU as a global leader in this area. However, this will only happen if implementation is taken seriously. Today it enters into force; for it to be worth the paper it is printed on, Member States must enforce it swiftly and ambitiously.”

EJF's recent investigations, in particular covering the Chinese fleet in the South West Indian Ocean and cattle ranching in the Brazilian Pantanal wetland have highlighted the alarming links between EU supply chains and human rights abuses. These activities contribute to the degradation of invaluable ecosystems and the livelihoods on which local communities depend.

Steve Trent added: "While this legislation represents a major step in cleaning up supply chains of environmental destruction and human rights abuses, Member States should recognise it merely sets a baseline upon which they can build more ambitious standards. Only about 0.05% of EU companies fall within its scope, so Member States are encouraged to apply these rules beyond the current company scope. This applies particularly to high-risk sectors such as seafood and cattle ranching."

"Due diligence obligations will extend to major European retailers with seafood supply chains, as well as larger seafood producers. These companies now have an opportunity to lead by example by supporting smaller business partners active in their supply chains to comply with the incoming rules.”

“Crucially, the progress achieved today should not be used as justification for the roll back of individual Member States’ domestic supply chain laws, as we have seen suggested by the governing coalition in Germany this month. This would mean one step forward, but two steps back towards a fairer and more sustainable economy that works for people and our planet.”

ENDS

Notes to editors

Member States have two years to transpose the Directive into national law, with the largest companies having to comply by 2027. The Directive sets minimum standards across all sectors, but Member States could go further when transposing and implementing the new requirements, says EJF. Both Member States and the European Commission must also ensure that national authorities have sufficient resources to hold non-compliant companies to account, according to the NGO.

EJF works internationally to inform policy and drive systemic, durable reforms to protect our environment and defend human rights. We investigate and expose abuses and support environmental defenders, Indigenous peoples, communities, and independent journalists on the frontlines of environmental injustice. Our campaigns aim to secure peaceful, equitable, and sustainable futures.

Our investigators, researchers, filmmakers, and campaigners work with grassroots partners and environmental defenders across the globe. Our work to secure environmental justice aims to protect our global climate, ocean, forests, and wildlife and defend basic human rights. For more information or to speak to one of our expert analysts, please contact media@ejfoundation.org.