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.
The study on the sustainability disclosures of 100 influential companies from high-impact sectors provides an early reflection on the general readiness for businesses in the EU to meet the expectations of the upcoming EU sustainability rules and standards. Our report contributes to identifying the main challenges, as well as to highlight emerging good practices.
Thanks to legal support from the Frank Bold expert group, the Czech Neighborhood Association Uhelná, which has been opposing the adverse effects of mining at the Polish Turów mine, has achieved a significant milestone: at their initiative, the Czech Environmental Inspectorate (CEI) launched an investigation to assess whether mining activities at Turów are causing long-term water loss on the Czech side of the border. This is one of the first cases in which the Czech office has applied the Act on the Prevention of Ecological Damage. The Inspectorate has also included the Polish mining company PGE in the proceedings.
Join us for our upcoming webinar where we present the findings from our analysis of sustainability disclosures by 100 large EU companies in high-impact sectors.
