Analysis of European Parliament’s proposal for the Corporate Sustainability Due Diligence Directive

June 2023Responsible business

On 1 June 2023, the European Parliament agreed its compromise text for the Corporate Sustainability Due Diligence Directive (CSDDD). This agreement means that the European Parliament has formed its negotiating position for the upcoming trilogue that will take place between the Parliament, European Commission and Council of the European Union for the coming months to agree the final text of the Directive. Importantly, this agreement takes us one step closer to mandatory human rights and environmental due diligence (HREDD)
legislation in the European Union (EU). We are pleased with the vast improvements made in this text to the Commission’s proposal, however there are some loopholes that remain, which cause serious concern for the final legislation’s ability to hold companies accountable for forced labour.