What's Happening?
A survey conducted by #WeAreEurope and Wageningen University reveals that a majority of European businesses support stronger due diligence regulations under the Corporate Sustainability Due Diligence Directive (CSDDD). The survey, which included responses
from companies across 21 EU and neighboring countries, found that 77% of businesses already conduct some form of due diligence. The survey indicates that 60% of companies want due diligence across value chains to be mandatory in EU law. The CSDDD aims to prevent human rights abuses and negative environmental impacts, with many businesses viewing it as a means to enhance transparency and resilience in supply chains.
Why It's Important?
The survey results underscore the importance of robust due diligence regulations in promoting sustainable business practices. By advocating for mandatory due diligence, European businesses are signaling a commitment to addressing human rights and environmental issues within their supply chains. This stance could influence EU policy, potentially leading to stricter regulations that hold companies accountable for their global operations. The findings also highlight a competitive advantage for businesses that adopt comprehensive due diligence practices, as they are better positioned to manage risks and meet consumer expectations for ethical and sustainable products.
What's Next?
The Omnibus proposals, which include changes to the CSDDD, are currently under negotiation. A new vote is scheduled for November 13, which could either strengthen or weaken the directive's scope. If an agreement is reached, the directive will enter the final trilogue stages involving negotiations between the European Parliament, Council, and Commission. The outcome of these discussions will determine the final text of the directive, expected by the end of the year. The US Government has expressed concerns about the directive's impact on American companies, suggesting potential international trade implications.
