Today, national ministers responsible for internal market and industry voted in favour of the first reading position adopted by the European Parliament in April 2024. This approval by the Council of the EU brings to a successful close the legislative journey of the Corporate Sustainability Due Diligence Directive (CSDDD), which will now become law.
“Many trade unionists, companies, human rights defenders, governments, communities, suppliers and small farmers from across the globe have watched what was happening in Europe over the last 4 years ”, said Julia Otten, Senior Policy Officer at Frank Bold. “The recognition that due diligence belongs in the realm of binding legislation marks a turning point in efforts to stop a race to the bottom in global value chains. It carries a clear message that companies delivering cheap prices by building on dumping practices, child labour, pollution and exploitation shall not be better off in the market and that victims of corporate abuse should have access to justice.”
Approval of a legislative text by Member States is the final step in the EU’s legislative process. Today’s vote culminates a 4-year long process to develop workable legislation on sustainability due diligence.
The CSDDD will enter into force 20 days after publication of the adopted text in the Official Journal of the European Union. Member States are required to transpose the Directive into national legislation within two years after its entry into force. Due diligence obligations will apply to companies in a staggered manner starting 3 years after entry into force, with the first group of companies set to start complying in mid-2027.
While the CSDDD is not perfect, it is a critical step forward. Frank Bold will continue to engage with various stakeholders to work on making the CSDDD deliver in practice and being effectively enforced across EU Member States.
As the EU navigates a critical period for its economic and environmental future, recent developments expose a troubling disconnect between political promises and policy action. What should we expect from our elected leaders when the foundations of sustainable competitiveness are being dismantled?
This legal briefing provides a detailed overview of the purpose, requirements, timeline, and most importantly, key interactions between different sustainability laws that will apply to companies operating in the European Union.
Speech by Filip Gregor at the public hearing on Reporting Obligations, held by the European Parliament's Committee on Legal Affairs on 13th May 2025
