What is CSDDD?
The CSDDD is a new EU law that imposes binding obligations on corporate giants to check their global value chains for human rights and environmental risks and harms. It also enables victims and EU member states to hold non-compliant companies accountable.
CSDDD rejects voluntary industry initiatives and translates international standards in the UN Guiding Principles on Business and Human Rights (UNGPs), UN Global Compact, and OECD Guidelines for Multinational Enterprises on Responsible Business Conduct (2011, 2023) into mandatory and enforceable due diligence rules for big business.
This law has been five years in the making, with the last two taken up by a turbulent EU legislative process. In December 2023, EU trialogue negotiations concluded with a political agreement. In January 2024, a final text was published ahead of approval votes by the Council and European Parliament. However, after an aggressive pushback campaign by a few member states and the corporate lobby, the text was drastically revised to narrow the law’s scope and weaken some provisions. An overview of the provisions and gaps is provided in the full briefing.
