Monday 25 Mar 2024 @ 15:33
Chatham House
Printable version

The EU’s Corporate Sustainability Due Diligence Directive is flawed. But it is an opportunity too

EXPERT COMMENT

The Directive’s reduced scope will blunt its impact. But there will be much to learn from its implementation.

The EU Corporate Sustainability Due Diligence Directive looks finally set to become law, following the decision by the EU Council to approve the legislation on 15 March 2024.

Just a few weeks ago, its future hung in the balance. An unexpected move by Germany to abstain in a crucial Council vote, followed by Italy, led to the vote being pulled.

The publicly-stated reasons for these last-minute wobbles were concerns about increasing ‘red tape’ for businesses during challenging economic times. With the credibility of the EU’s responsible business agenda at stake, and with EU Parliamentary elections just around the corner, there was no time to lose in finding a compromise that might get the law over the line.

In the end, this was achieved largely through changes in timing and scope. The final negotiated version applies to companies with at least 1,000 employees and €450 million turnover. 

Click here to continue reading the full version of this Expert Comment on the Chatham House website.

 

Channel website: https://www.chathamhouse.org/

Original article link: https://www.chathamhouse.org/2024/03/eus-corporate-sustainability-due-diligence-directive-flawed-it-opportunity-too

Share this article
RESEARCH EXPERTS EVENTS MEMBERSHIP ACADEMY ABOUT

 

Latest News from
Chatham House

The US aid package to Ukraine will help. But a better strategy is urgently needed

26/04/2024 10:10:10

The essential aid package will allow Kyiv to slow down Russian forces. But the delay had a real cost for Ukraine, and a secure long-term funding model is required.

As yet another UN Libya envoy quits, his successor must be bolder

25/04/2024 14:20:00

To break through Libya’s political stalemate, the UN must be willing to pursue a bolder strategy, despite the risks of failure.

The Baltic Sea is far from a ‘NATO lake’ – the alliance must strengthen its defences

23/04/2024 14:10:00

Alliance countries need better understanding of the risks to their undersea infrastructure, and improved signalling to deter Russian sabotage and hybrid attacks.

Iran–Israel exchanges are a test for China’s influence in the Gulf

22/04/2024 16:10:00

Beijing’s diplomatic activism shows it is worried Iran–Israel tit-for-tat may undermine Saudi–Iran reconciliation.

Simplicity is the key to closing the climate finance gap

22/04/2024 12:20:00

Conventional, publicly capitalized financial instruments are the only way to mobilize private finance on a very large scale.

A new European Court of Human Rights ruling has established a vital new precedent

18/04/2024 13:10:00

The judgement shows litigation can be used to hold governments to account on their climate ambitions – but much will depend on policy outcomes.

Fiscal incontinence is going global and could pose a risk to financial stability

16/04/2024 15:10:00

While the global economy is showing signs of strong growth, public debt levels in emerging markets are rising at an alarming rate.

Iran’s attack on Israel was not the failure many claim but it has ended Israel’s isolation

16/04/2024 10:20:00

The strikes demonstrated a more assertive approach from Tehran, but the region’s security now depends on Israel’s ability to play a longer game.

The strike on Iran’s consulate in Syria could be the spark that ignites the Middle East

15/04/2024 16:10:00

Israel’s attack signalled a shift in its strategy towards Iran. Tehran’s response and the US promise of ‘ironclad’ support for Israel risks escalation of this transnational conflict.

Public Service Insights: Effectively Onboarding New Employees With An Intranet