_(27843153986).jpg)
The Russian war in Ukraine has, in addition to the COVID-19 global pandemic, once again highlighted the need for corporate human rights and environmental due diligence (HREDD) regulation, such as the proposed EU Corporate Sustainability Due Diligence Directive (CSDDD).
After the start of the Russian invasion, many European companies struggled with the challenges of conducting business in the region responsibly. Issues arose in relation to the provision of essential services to affected people; engagment with employees on safety, protective measures, salaries and relocations; alongside highly-publicised questions over whether, when and how to responsibly exit the Russian and Belarussian markets. (As of early June 2022, almost 1000 companies have announced their withdrawal from Russia).
The type of business relationships European companies maintained in Russia prior to the war (the provision of technology services to the Russian military, for example); how companies reacted immediately after the invasion; and how they continue to react is significant and, in many cases, has been costly to affected persons as well as companies themselves.
The scale and divergent nature of these reactions show the urgent need for crosssectoral HREDD obligations in order to ensure common standards of responsible business conduct and private sector preparedness in the face of future crises.
As part of its strategy to implement the European Green Deal and the Action Plan on Financing Sustainable Growth, the European Commission presented its proposal for a Corporate Sustainability Due Diligence Directive (CSDDD).
The Corporate Sustainability Reporting Directive (CSRD) proposal stipulates that EFRAG should be responsible for carrying out a due process to draft, consult and deliver EU sustainability standards for adoption by the European Commission. On 1 March, the EFRAG General Assembly appointed the members of the EFRAG Sustainability Reporting Board, which will be responsible for all sustainability reporting positions of EFRAG, including technical advice to the European Commission on draft EU Sustainability Reporting Standards and related amendments.
Following months of negotiations in the European Parliament, the amendments to the CSRD proposal have been approved by the JURI committee this Tuesday 15th of March.
