24 April 2024, Brussels - Today, the
European Parliament approved the final Corporate Sustainability Due Diligence
Directive (CSDDD), which was renegotiated earlier this year.
For
the first time, there will be a law which empowers communities anywhere in the
world to sue big companies responsible for human rights abuses and associated
environmental harms in EU courts.
The final deal however includes major concessions, meaning
many big companies will face no repercussions for abusing human rights or
damaging the environment.
Beate Beller, corporate accountability campaigner at Global Witness, said: “It was only a few weeks ago that EU Member States nearly killed this law off completely, so today’s vote to pass the final law is something to celebrate.
While national governments such as Germany, France and Italy weakened it at the last minute, a new chapter is about to begin for corporate accountability.
The biggest companies operating in the EU will be obliged to respect human rights and the environment, and the law gives people who are at risk from dangerous business practices a chance to fight back.”
The law is now subject to final approval by Member States, after which it will be transposed into national law.
After this, the biggest EU companies – with over 5,000 employees and €1.5 billion in turnover – will need to be compliant by 2027, followed by companies with more than 3,000 employees and €900 in turnover in 2028, and companies with at least 1,000 employees and €450 million in turnover in 2029.