CSDDD

EU Reaches Provisional Agreement on Forced Labour Regulation

Posted on March 25, 2024

Posted in Environmental, Social, and Governance, European Environmental and Public Law

The proposed regulation would ban forced labour-made products from the EU market, affecting companies’ supply chains and requiring compliance checks.

By Paul A. Davies, Michael D. Green, and James Bee

On 5 March 2024, the European Parliament and European Council announced that they had reached a provisional political agreement on the regulation (Regulation) that aims to prohibit any product manufactured using forced labour from being placed on or exported from the EU market.

The European Commission proposed the…

EU Member States Reach Agreement on Corporate Due Diligence Directive

Posted on March 18, 2024

Posted in Environmental, Social, and Governance, European Environmental and Public Law

Following extended negotiations, the directive was endorsed with a significantly narrower scope that would reduce the number of companies affected.

By Paul A. Davies, Michael D. Green, and James Bee

On 15 March 2024, EU Member States endorsed the Belgian Presidency’s political deal on the Corporate Sustainability Due Diligence Directive (CSDDD), despite Germany abstaining from the vote.

The CSDDD would require companies to conduct due diligence to identify and assess environmental and human rights issues across their value…

Corporate Due Diligence Rules Agreed by European Council and European Parliament

Posted on December 15, 2023

Posted in European Environmental and Public Law

The new rules would oblige companies to integrate their human rights and environmental impact into their management systems.

By Paul A. Davies, Michael D. Green, and James Bee

On December 14, 2023, the European Council (Council) and European Parliament (Parliament) reached provisional agreement on the Corporate Sustainability Due Diligence Directive (CSDDD). The agreement follows an extensive negotiation processes, which began in June 2023, after the European Commission had initially proposed the CSDDD in February 2022.

The CSDDD’s key aim is to enhance the protection of the environment and human rights globally. The CSDDD as proposed will set obligations for companies regarding the actual and potential adverse impacts of their own operations, those of their subsidiaries, and those carried out by business partners, described as the “business chain of activities.” The CSDDD would also establish a requirement for large EU companies to adopt a plan to ensure that their business model and strategy are compatible with the Paris Agreement, i.e., including concrete targets and measures in line with limiting global warming to 1.5 °C.

The proposed CSDDD would establish rules on penalties and civil liability for infringements (although these will ultimately be set by Member States).

OECD Updates Corporate Due Diligence Guidelines

Posted on June 27, 2023

Posted in Environmental, Social, and Governance, European Environmental and Public Law

The Guidelines build on current social, environmental, and technological issues facing businesses following the last update in 2011.

By Paul A. Davies, Michael D. Green, and James Bee

The Organisation for Economic Co-operation and Development (OECD) released updated Guidelines for Responsible Business Conduct on 8 June 2023 (the OECD Guidelines).

Background to the OECD Guidelines

The OECD Guidelines, introduced in 1976, set out voluntary principles and standards to ensure multinational companies embed due diligence practices, to enhance sustainable development and address adverse social and environmental impacts. Currently, 51 countries adhere to the OECD Guidelines, including the majority of EU Member States.

European Parliament Agrees Position on Corporate Sustainability Due Diligence Directive

Posted on June 15, 2023

Posted in Environmental, Social, and Governance, European Environmental and Public Law

Trialogue negotiations have begun following the parliament’s vote.

By Paul A. Davies, Michael D. Green, and James Bee

On 1 June 2023, the European Parliament voted to adopt its initial negotiating position on the EU’s proposed Corporate Sustainability Due Diligence Directive (CSDDD).

If adopted, the CSDDD would apply to large EU and non-EU businesses with significant net turnover in the EU. It would impose requirements to identify, prevent, end, or mitigate the negative impact of activities on human rights and the environment. CSDDD is still in the trialogue stage, whereby the three core branches of the EU negotiate the final content of legislation. Hence, the specific details of the CSDDD continue to evolve as they are negotiated by the EU’s political institutions. Further, as a directive that would need to be transposed into the domestic law of each EU Member State and given the key role for national regulators under the proposals, the CSDDD’s exact scope and impact will depend on the results of the negotiations and its implementation in each of the EU’s jurisdictions.

European Council Adopts Negotiating Position on Corporate Sustainability Due Diligence Directive

Posted on December 2, 2022

Posted in Environmental Regulation, Environmental, Social, and Governance, European Environmental and Public Law

The Council’s position includes a number of differences from the European Commission’s original proposal, including in relation to the requirement to diligence the broader value chain.

By Paul A. Davies, Michael D. Green, and James Bee

On 30 November 2022, the European Council (the Council) — which comprises the views of the EU Member State governments — adopted its negotiating position on the EU’s proposed Corporate Sustainability Due Diligence Directive (CSDDD). The CSDDD would require large companies operating in the EU to undertake due diligence on their own activities and that of their suppliers, and to identify, mitigate, or avoid any actual or potential adverse impacts of their business operations. The CSDDD would also set out any penalties (including possible civil liability) in relation to the breach of such obligations.

Menu

Environment, Land & Resources

Environment, Land & Resources

CSDDD

Corporate Due Diligence Rules Agreed by European Council and European Parliament

Topics

Archives