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EU Corporate Sustainability Due Diligence Directive Weakened, Raising Human Rights Concerns
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A recent vote in the European Parliament significantly weakened the Corporate Sustainability Due Diligence Directive (CSDDD), sparking concerns about corporate accountability for human rights and environmental abuses within global supply chains. The changes, finalized on November 13, 2024, represent a setback for years of advocacy and legislative effort.
Background: The Corporate Sustainability Due Diligence Directive (CSDDD)
The CSDDD aimed to establish a legal framework requiring companies to identify,prevent,mitigate,and account for human rights and environmental risks throughout their value chains. This included obligations to conduct due diligence across the supply chain - encompassing all stages from raw material sourcing to manufacturing and distribution - and to provide remedies for victims of abuse.As human Rights watch reported in May 2024, the initial directive represented a groundbreaking step towards corporate accountability.
The November 13th Vote: A Setback for Rights Protections
On november 13, 2024, a majority in the European parliament, driven by a coalition including the European People’s Party (EPP) and far-right parties, significantly altered the CSDDD during amendment negotiations. This resulted in a substantially weakened directive, diminishing the scope of corporate responsibility. The EPP, the largest political group in the European parliament, lead by Manfred Weber, openly aligned with far-right factions to achieve this outcome.
Key changes included removing provisions for civil liability at the European level, which would have allowed victims of abuses to seek redress directly from companies. This effectively shields corporations from legal consequences for harms caused within their supply chains. Critics argue this failure “dangerously normalizes a global erosion of human rights standards at the hands of corporate lobbies.”
Political Alignments and Opposition
The weakening of the CSDDD was largely attributed to the coordinated efforts of the EPP and far-right parties. These groups argued that the original directive imposed excessive burdens on businesses and hindered competitiveness. their opposition was bolstered by extensive lobbying from corporate interests seeking to avoid stricter regulations.
the vote highlights a growing tension between the push for greater corporate social responsibility and the influence of business lobbies within the EU political landscape. The outcome represents a meaningful victory for those advocating for deregulation and a more lenient approach to corporate accountability.
Impact on Supply Chain Accountability
The revised CSDDD significantly reduces the incentive for companies to proactively address human rights and environmental risks in their supply chains. Without the threat of civil liability, corporations are less likely to invest in robust due diligence measures and provide effective remedies for victims of abuse. This could lead to a continuation,or even an increase,in exploitative labor practices,environmental degradation,and other harmful impacts associated with global supply chains.
The directive now focuses primarily on reporting requirements, rather than enforceable obligations.while reporting can raise awareness, it lacks the teeth necessary to drive meaningful change.
