Towards EU due diligence rules that work for all

The joint statement—co-signed by 28 associations – highlights several critical areas for the supply industry:

• Comprehensive Competitiveness Assessment: An immediate, thorough evaluation of CS3D in consultation with industry stakeholders with an assessment that shall identify and address priority areas for simplification, clarification, and burden reduction, which we aim to achieve in upcoming implementing legislation and guidance.
• Guidance and Compliance Timeline: Guidelines and implementing legislation should be adopted at least two years before compliance becomes mandatory.
• Harmonisation and Interoperability: Ensuring aligned and interoperable rules across the EU remains essential to supporting Europe’s competitiveness and a well-functioning Single Market.

You can read the full statement below.

Background

The Corporate Sustainability Due Diligence Directive (CS3D) introduces obligations for companies with global value chains with an aim to enhance sustainable practices. However, the directive’s complexity raises significant challenges including inconsistent regulatory requirements, administrative burdens and disadvantages for small and medium-sized enterprises. To avoid these issues, the European Commission must prioritise a competitiveness assessment for the simplification and harmonisation of CS3D, fostering a level playing field.