CSDDD: A first step in the right direction but it could be easier
The Economy for the Common Good (ECG) welcomes the EU Parliament’s position on the Corporate Sustainability Due Diligence Directive (CSDD) published on June 1. In particular, the fact that the many attempts to water down the guideline have been successfully averted. Nevertheless, regulation could be simplified by merging the two “CS” directives CSRD and CSDDD, something that ECG´s “Common Good Balance” already provides for.
Article 26 of the CSDD fell victim to the parliamentary vote, which would have made management directly responsible for monitoring due diligence. All that remained was Article 25, which requires management to “take into account” risks related to human rights and environmental and climate protection. “This is significantly less than the enforceable obligation to monitor the relevant due diligence requirements. The fact that the Council also wants to delete Article 25 in its position shows how little the EU legislative bodies are willing to seriously hold international corporations accountable,” said ECG initiator Christian Felber. ECG notes positively that the threshold of companies affected has been lowered to 250 employees and that the financial sector has not been excluded.
Image credits: @christianlue / unsplash
