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In a significant step forward, the European Parliament has adopted the final text of the EU Corporate Sustainability Due Diligence Directive (CSDDD).
This comes just a day after a complementary piece of the legislative framework on responsible business, the Forced Labour Regulation was adopted with an overwhelming majority. The next phase for the #EUFLR is to receive the endorsement of the EU Council, which is anticipated to happen after the EU elections in June.
Both of these legislations are a significant step forward for human rights due diligence as there will be mandatory requirements for companies in scope.
Next there will be a two-stage approval by the Council of the European Union, which is expected to happen in May and to be published in the EU Official Journey. Once published, EU Member States will have two years to transpose the directive into national law.
The due diligence requirements within the CSDDD require companies to adopt an approach that is in line with the UN Guiding Principles.
As successful implementation of the CSDDD will require collaboration by all stakeholders, at ETI we are looking forward to utilising our membership base of NGOs, companies and trade unions to navigate next steps.
“We applaud the EU’s position on both the CSDDD and the Forced Labour Regulation. Products made with forced labour have no place in the EU or the UK market. While leading responsible businesses already take action to respect human rights and the environment there are plenty that don’t.
These regulations have the potential to level the playing field for companies trading in or with the EU, to make conducting human rights due diligence the norm, and improve working conditions worldwide. The UK should regain a leading position in this area by developing similar regulations that support responsible business.”
Peter McAllister, Executive Director