On Thursday, 1 June 2023, the European Parliament again voted in favour of the introduction of the Corporate Sustainability Due Diligence Directive (CSDDD).
First proposed in February 2022, the directive aims to hold companies accountable for violations of human rights and environmental standards in their value chains.
This latest vote, albeit not as overwhelmingly supported as the previous vote by the justice committee in April, presents another step forward in establishing corporate duties for companies in assessing and reporting on the human rights and environmental impact of their supply chain. Whilst the directive is not without its critics or its limitations, it follows in the wake of Germany’s Lieferkettengesetz and the Norwegian Åpenhetsloven both aimed at increasing transparency within the supply chain.
Following the successful vote today the directive will now move to inter-institutional negotiations called “trilogues” with the EU Commission and member states, who have already agreed on a common position.
The importance of this latest successful round of voting should not be underestimated. With many NGOs and reporting mechanisms presenting data that shows an increase in the prevalence of modern slavery and exploitation, it’s now more important than ever that a robust and coordinated approach is implemented to combat this global challenge.
As the proposed directive gradually moves closer to being approved, companies likely to be affected should ensure adequate systems are in place to conduct meaningful due diligence which produces annual reports which pass increasing scrutiny.
The good news is that there is a way to manage supply chain due diligence more easily. Achilles provides the serious, detailed analysis and expert insight necessary to deliver exceptional ESG supply chain due diligence and reporting confidence. Get in touch to learn more.
