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.