Mediaroom

• Corporate Sustainability Due Diligence Directive should not undermine EU’s integration in global value chains 

The European Parliament agreed on its final negotiating mandate earlier this month, which has paved the way for the inter-institutional negotiations on the Corporate Sustainability Due Diligence Directive (CS3D).

The CS3D will impose mandatory human rights and environmental due diligence requirements on companies towards their value chains, including the responsibility to ensure that business models are compatible with the objective to limit global warming to 1.5 degrees. Failure to comply could lead to fines based on global revenues or civil liability claims.

During the initial trilogue session, 20 technical meetings were scheduled to discuss the amendment proposals from member states and the Parliament. Both institutions have proposed amendments that would significantly improve the directive. CLEPA has from the beginning supported the initiative to adopt a Europe-wide legal framework for human rights and environmental due diligence. But further work needs to be done to avoid disproportional administrative burdens, legal uncertainty and limited ability for EU businesses to participate in global value chains. To this end, CLEPA presented policymakers with seven priorities and endorsed the amendment proposals that would serve these priorities. Among the priorities are provisions to further harmonise the legal due diligence framework across member states and a greater recognition for industry collaboration, reflecting the limitations individual companies face in terms of conducting due diligence across their deep value chains.

Find out more on the European Parliament’s website.