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European Union's Corporate Sustainability Due Diligence Directive Faces Opposition

EU flags fly outside the European Commission in Brussels

On March 2, 2020, the European Union's Corporate Sustainability Due Diligence Directive (CSDDD) faced mounting opposition following the release of its final draft on January 20. The legislation, aimed at establishing a corporate due diligence standard on sustainability issues for businesses operating in the EU, has been a topic of intense debate.

The CSDDD primarily focuses on environmental concerns, climate change, and human rights, applying not only to the actions of companies but also to their subsidiaries and supply chain. This means that EU-based companies and non-EU companies conducting a certain level of business in the EU could be held accountable for the actions of their suppliers.

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