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Today reports emerged that the Belgian Presidency of the Council of the European Union have tabled a final attempt to reach a compromise on the Corporate Sustainability Due Diligence Directive (CSDDD).
This welcome decision follows last week’s failure by EU member states to reach a political agreement on the CSDDD, a major blow for responsible business and workers worldwide.
The coming days will see the Belgian Presidency bring together EU member states and require each to engage constructively, voice their concerns and work together to find a solution.
This is truly a last-ditch attempt to get the CSDDD approved by this European Parliament, and there are major concessions on the table. Key issues on the agenda include raising thresholds to target the largest companies, removing the requirement to consider high risk sectors, refocusing on direct relationships, removing contentious financial incentives, and allowing flexibility around its final legal adoption.
This further attempt by the Belgian Presidency is positive, as is the overwhelming support from responsible businesses, and business associations to date, but conceding to these integral changes could mean the real power of the Directive is almost completely neutralised.
Tomorrow, on 7 March, EU ministers will meet in the COMPET Council to discuss the CSDDD as an AOB item. Next on Friday 8 March, EU Ambassadors in COREPER will meet for a final chance to agree on a compromised deal. After four years of negotiations, the fate of the CSDDD now comes down to the next two days.
“While we applaud the effort to get a form of CSDDD agreed in this session, we are very concerned that the proposed combination of a reduced scope and removal of the requirement to consider high risk sectors, significantly weakens the Directive - both as a tool to address worker rights abuse and to level the playing field for responsible business.”
Peter McAllister, Executive Director, ETI.
We urge those involved to ensure that any form of CSDDD that is passed, is in keeping with the spirit of supporting business and protecting human rights in a meaningful way.