New EU directive will make companies legally liable for environmental damage

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Corporate Sustainability Due Diligence Directive, which aims to curb corporate abuses on human rights and the environment, approved by EU 27

Irish MEP Barry Andrews described the vote as a victory for the EU, the environment and the many lives, communities, and ecosystems affected by destructive business practices. Photograph: Conor Ó Mearáin/Collins

In what is being seen as a landmark victory in the fight for corporate accountability, the EU 27 approved the Corporate Sustainability Due Diligence Directive which aims to curb corporate abuses of human rights and the environment. The CSDDD effectively establishes a corporate due diligence standard on sustainability issues for businesses operating in the EU. The due-diligence requirements will apply not only to the direct actions of the company but also to their subsidiaries and supply-chain contributors.

“Although it is far short of what I would have liked to have seen, it is an important first step in the fight against fast fashion, forced labour and a whole range of other corporate abuses,” he said.

 

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