The CSDDD has been a controversial topic for quite some time. However we are near the time of decision-making. The EU Parliament will vote on the #CSDDD next week, despite criticisms of its diluted nature. Here are five reasons why even a watered-down version of the directive is valuable:
It establishes sustainability due diligence as a legal requirement, signaling its importance in the ‘hard law’ domain, complementing existing guidelines like the UN Guiding Principles.
The CSDDD impacts companies indirectly, especially those in global value chains, extending its reach beyond directly covered entities.
It provides a legal framework for ongoing discussions on sustainability due diligence, with potential for future expansion and enhancement.
As the first of its kind, the CSDDD serves as a blueprint for similar regulations globally, fostering learning and improvement based on experiences.
Despite being diluted, the CSDDD still promotes awareness of risk-based due diligence across value chains, contributing to knowledge dissemination and learning.
Approval by the Parliament will require subsequent endorsement by the Council in May, followed by publication and transposition into national laws.
