https://www.business-humanrights.org/en/latest-news/eu-csddd-political-a...
NGOs welcomed the Council's endorsement as a landmark decision, but criticised the last-minute changes to the deal. The new compromise text agreed by the Council still needs EU Parliament approval. We will collect reactions as they come in the timeline below.
Due Diligence passed in Council! People and planet prevailed over cynicism. Thanks so much to the Belgian Presidency for all its efforts!
MEP Lara Wolters, Lead Rapporteur on the CSDDD
Finally, the [Member States] got their act together and reached an agreement on the CSDDD. The price was a significant dilution of the level of ambition, but the core of this transformative legislation remains intact. The UNGP will be, for the first time, codified in EU law.
MEP Heidi Hautala, Vice-President of the European Parliament
Today’s backing of the Corporate Sustainability Due Diligence Directive by the EU Council is landmark progress for workers’ and communities’ rights in Europe and worldwide, and the protection of responsible business against abusive competitors.
Phil Bloomer, Executive Director, BHRRC
Background: In the early morning of 14 December 2023, negotiators from the European Parliament, Council (member states) and Commission reached a final political deal on the EU Corporate Sustainability Due Diligence Directive (CSDDD). A joint press conference took place the same day.
Civil society welcomed the Trilogue agreement as a landmark moment for human rights and environmental protections in business, but criticised serious loopholes and missed opportunities, such as the exclusion of financial activities from due diligence.
Following the political agreement from December 2023, final technical details were worked out, paving the way for EU Parliament and Council to formally adopt the directive (final 4 column document here). However, despite ongoing business support for the directive, an effective and at the same time practicable risk-based approach, and comprehensive protections for SMEs, German junior coalition partner FDP - in a last-minute move that received much international and national criticism - announced it was rejecting the compromise. They were blocking German support for the CSDDD in Council (while reportedly trying to convince other member states to also withdraw their support). In a meeting on 28 February, member states failed to endorse the CSDDD, with Italy's and France's (after a last-minute attack) position uncertain as well. Over 130 organisations, including the Resource Centre, called on the Belgian Presidency and member states to return to negotiations and secure a majority for the text agreed during the trilogue. A recording of a press conference held the same day by EU Parliament Rapporteur Lara Wolters is available here.
The last-minute setback in early 2024 was despite overwhelming support. Numerous academics and large and small companies and their networks called on the German Government and Chancellor Scholz to secure a majority for the EU Trilogue compromise. There were similar calls on EU Governments by businesses from other regions, as well as over 300 B&HR professionals and the United Nations.
The EU Commission had first presented a proposal for an EU mandatory due diligence law in February 2022 and trilogue negotiations began in summer 2023, after the Council adopted its position in December 2022 and the Parliament in June 2023.
In the timeline below, we are collecting updates, analysis, civil society and other reactions to the political agreement and follow-up process.
For background leading up to the political agreement on 14 December 2023, please refer to this story.
Further materials and information, including on business support for the CSDDD, are also available on our Mandatory Due Diligence Portal, and in our blog series Towards Mandatory Human Rights Due Diligence.
