On March 15, a sufficient majority of EU member states approvedthe weakened draft of the Corporate Sustainability Due Diligence Directive (CSDDD). The CSDDD and the EU Supply Chain Act are intended to hold companies accountable for violations of employee, human and environmental rights along their supply chain.
In its latest version, the CSDDD now only covers EU and non-EU companies as well as parent companies with more than 1,000 employees (instead of 500 employees) and a turnover of at least 450 million euros (instead of the original 150 million euros). In addition, the latest version of the CSDDD provides for gradual application depending on company size and turnover. This was also not included in the previous version in this form.
Once formally adopted by the European Parliament and the Member States, the Directive will enter into force on the twentieth day following its publication in the Official Journal of the EU.
After final adoption at EU level, the EU Supply Chain Act must still be transposed into national law. In Germany, it is expected that the Supply Chain Due Diligence Act, which has been in force since January 1, 2023, will be amended accordingly.
Links:
First green light to new bill on firms’ impact on human rights and environment
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