EU reaches deal on contested CSDDD: Thousands of firms set to become liable for their supply chains
Whereas the original directive would have affected up to 16,000 companies, it is now estimated that about 5,300 of Europe’s largest corporations fall under its remit.
Though reduced in scope, the Corporate Sustainability Due Diligence Directive (CSDDD) draft approved today by EU Member States is set to dramatically transform the way companies approach supply chain management, making them bear legal responsibility for environmental human rights breaches.
Observers have been kept on the edge of their seats for months, as the draft agreed upon by the EU Council and Parliament last December lost critical support ahead of its final approval – and was eventually rejected by Member States at the end of February.
