By 
30-05-2024
Innocenti Chiara
Europe Researcher,
Global Human Rights Defence.
Brussels, April 27th – On May 24th, 2024, the European Council formally approved the Directive on Corporate Sustainability Due Diligence (CSDDD), marking a significant step forward in reinforcing human rights and environmental protections within the European Union. The proposal, initially presented by the Commission to the European Parliament on February 23rd, mandates that large companies operating within the EU borders must ensure their supply chains are both more than just and greener.
The Decision, which passed with 374 votes in favour, 235 against, and 19 abstentions, concluded a complex and intense legislative process. Some EU member States, including Italy, France, and Germany, initially sought to dilute the law, concerned about the piling red tape on companies. Battling for a swift adoption of the Directive, instead, were trade unions, political leaders, businesses, and civil rights organisations, citing all negative consequences that a corporate behaviour unmoved by previous industrial disasters might have on human rights.
Notably, under the Directive, all companies with more than 1,000 employees and an annual turnover exceeding €450 million will be required to conduct due diligence throughout their whole value chain. This includes auditing both the “upstream” activities of design and production, as well as the “downstream” operations of storage, distribution, and transportation. Additionally, EU-based companies are required to create and implement a transition plan to align with the Paris Agreement on climate change and establish the private right of civil action. This will allow victims of corporate abuses to indict all companies intentionally or negligently failing to comply with the imposed obligations, with national courts empowered to impose strict sanctions on non-compliant companies.
This development marks a pivotal shift for the European Union, transforming what was once a general, voluntary commitment to human rights and environmental protection into a binding legal obligation. The Directive is specifically designed to prevent, identify, solve, and mitigate adverse human rights and environmental impacts, providing a much-needed framework to safeguard vulnerable communities and ecosystems.
Sources and further reading:
(2024, May 24). EU Adopts Groundbreaking Business Value Chain Law. Human Rights Watch. Retrieved on May 24, 2024, from
https://www.hrw.org/news/2024/05/24/eu-adopts-groundbreaking-business-value-chain-law.
(2024, April 24). EU Parliament Approves New Business Supply Chain Audit Law. Reuters. Retrieved on May 29, 2024, from
(2024, April 24). EU Parliament Approves Corporate Supply Chain Law. Euroactiv. Retrieved on May 29, 2024, from
(2024, May 24). Questions and Answers: New EU Law on Corporate Value Chains. Human Rights Watch. Retrieved on May 28, 2024, from
https://www.hrw.org/news/2024/05/24/questions-and-answers-new-eu-law-corporate-value-chains.
(2024, May 24). Corporate Sustainability Due Diligence: Council Gives its Final Approval. Council of the European Union. Retrieved on May 29, 2024, from
(2024, May 24). Corporate Sustainability Due Diligence. European Commission. Retrieved on May 29, 2024, from
Schickler, J. (2024, May 24). Politica UE. Gli Stati dell’UE approvano la direttiva sulla due diligence aziendale semplificata. Euronews. Retrieved on May 29, 2024, from
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