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.
To support our advocacy work on concrete legislative proposals and recommendations, we collaborate with partners from the Czech Republic, Poland, and Slovakia to prepare and publish reports, case studies, data analyses, and examples of international best practices.
To start the New Year with an interesting and thought-provoking event, Frank Bold and ClientEarth organised a screening of This Changes Everything, a documentary based on Naomi Klein’s international non-fiction bestseller.
In his political guidelines for the new EU Commission, President Juncker pledged to create a European Capital Markets Union (CMU) to increase non-bank financing of the European economy and further integrate capital markets. In this context, the EU Commission launched a public consultation in February 2015.
