Articles for category: Unboxing the New EU Corporate Sustainability Due Diligence Directive

The Corporate Sustainability Due Diligence Directive beyond Europe

The CSDDD is a game changer that forces a large number of European States to level the legislative landscape with regard to corporate responsibility for human rights and environmental impacts, as well as in relation to liability and access to justice. And yet, its reach throughout global “chains of activities” will most likely bring important hurdles for implementation including in relation to the scope of human rights covered in practice; the need for effective capacity-building in transnational chains of activities; the need for a more proactive dialogue and cooperation between the EU and other States; and last but not least, in ensuring consistency between the national implementation of the CSDDD and international and regional human rights obligations.

The Unintended Consequences of Mandatory Due Diligence

The EU Corporate Sustainability Due Diligence Directive (CSDDD) seeks improvements in companies’ societal impacts but carries risks of negative impacts, including on the developing countries where some supposed beneficiaries are located. Does the CSDDD recognise and mitigate such risks? The blog identifies provisions in the CSDDD that address the unintended consequences that mandatory human rights and environmental due diligence requirements might have in developing countries.

More of the same or true evolution?

While rights holders are not expressly mentioned as a group of stakeholders in CSDDD, the adoption of this important legislation creates a significant opportunity to involve rights holders to define how the content of the stand-alone article on stakeholder engagement can be filled with legal meaning by soliciting them directly.

From Paper to Practice

The CSDDD requires companies to carry out due diligence on actual and potential human rights and environmental adverse impacts. This means companies have to identify harmful impacts in their value chains and take appropriate measures to prevent, mitigate, or bring them to an end. In this two-part blog post, we will look at which environmental impacts are covered by the CSDDD and how they are addressed. In this second part, we will discuss how the CSDDD negotiations influenced the design of its environmental provisions and identify missed opportunities. We will conclude by analysing what factors are important to ensure that transposition and implementation remain true to the CSDDD’s objectives.

Towards Planetary Boundaries for Business?

While the material scope of the EU’s Corporate Sustainability Due Diligence Directive (CSDDD) fell behind civil society demands, it does mandate a degree of environmental due diligence that constitutes a tentative shift towards real corporate environmental accountability. Despite its conceptual restrictions, which are the result of a somewhat polarised legislative process, the CSDDD’s environmental annex provides a provision with potential for the protection of biological diversity: the reference to the Convention on Biological Diversity.

Dividing the Indivisible

The absence of a number of important human rights instruments from the EU’s Corporate Sustainability Due Diligence Directive, notably for indigenous peoples’ and migrants’ rights, are serious omissions and must be rectified at the EU level during the first review of the directive. Given the status of the CSDDD as a directive, Member States also have the freedom to add these missing instruments during national transposition and should do so in order to further honour their commitments under the UNGPs.

National Human Rights Institutions – Critical but, Overlooked Actors

National Human Rights Institutions are a critical but often overlooked actor in the context of the European Union’s Corporate Sustainability Due Diligence Directive. As we enter the transposition and implementation phases, National Human Rights Institutions can leverage their unique mandate as human rights experts in their jurisdictions to act collectively and individually to ensure that transposition laws meet human rights standards for an effective implementation.

A Comparative Analysis between the Corporate Sustainability Due Diligence Directive and the French and German Legislation

This blog post offers an initial comparative glimpse of the most important changes that the Corporate Sustainability Due Diligence Directive (CSDDD) will bring for the respective mandatory human rights and environmental (HREDD) legislation in Germany and France. While both the French Duty of Vigilance Law and the German Supply Chain Act already require effective HREDD, the CSDDD goes a long way in strengthening the requirements and bringing them more in line with international standards.

Conditions of Corporate Civil Liability in the Corporate Sustainability Due Diligence Directive

The civil liability provision of the Corporate Sustainability Due Diligence Directive (CSDDD) in Article 29 has been highly debated during the entire drafting and negotiation process of the Directive, but it held on. Where harm occurs, will Article 29 CSDDD fulfill its function to provide a right to remedy for the affected individuals and legal clarity for the companies at the same time?