EU-countries agree important law on corporate sustainability

The Danish Institute for Human Rights welcomes the outcome of the Coreper meeting on 15 March where Member States have expressed their support for the EU Corporate Sustainability Due Diligence Directive (CSDD).  

The directive which requires large companies to conduct human rights and environmental due diligence throughout their operations and value chains is a key initiative capable of harnessing the transformative potential of the UN Guiding Principles on Business and Human Rights (UNGPs).

An EU level mandatory human rights and environmental due diligence law will catalyse action from business needed to address key human rights and environmental challenges we face globally. It will serve as an international benchmark for responsible business conduct and create a common set of standards to focus energies and harness the power of business for good. 

“In spite of some regrettable departures from the agreement reached in December 2023, we applaud the EU’s leadership to promote responsible business conduct and respect for human rights throughout global value chains", Elin Wrzoncki, Department Director, Human Rights, Business & Tech, Danish Institute for Human Rights, says. 

"The EU and its Member States are sending a clear signal that businesses need to step up their efforts to avoid and address harm to people and planet. This has been long awaited by citizens, consumers inside and outside the EU, as well as by responsible businesses and investors. We can now focus the energy on supporting an effective implementation of this law in the spirit of the UNGPs”.

The Institute looks forward to the initiative being adopted by the European Parliament and to supporting the transposition and implementation of this key initiative to advance business respect for human rights in practice.