NFU Press Release: CSDDD – failed vote at the Council
On 14 December 2023, the Parliament and Council reached a preliminary agreement on the Corporate Sustainability Due Diligence Directive (CSDDD). Following Germany’s threat to abstain, weakening EU support on 6 February 2024, the final draft issued on 30 January 2024 faced delays, pushing the European Council’s approval vote from its original schedule on 9 February to 28 February 2024. After the Council’s consent, the CSDDD is set for a vote by the EU Parliament’s Legal Affairs Committee (JURI), and then the full Parliament in April 2024, mirroring the European Commission’s similar adoption timeline. This sequence was disrupted by Germany’s abstention announcement, leading to a postponement and diminishing the initial consensus on the CSDDD.
The developments surrounding the Corporate Sustainability Due Diligence Directive (CSDDD) are incredibly disappointing and represent a significant setback for efforts to tackle labour, environmental, and human rights abuses across supply chains. The opposition from over half of the EU’s member states highlights a concerning trend towards diluting the impact and reach of crucial legislation meant to promote sustainable business practices.
NFU General Secretary, Carin Hallerström said:
It is particularly disheartening to see countries that had previously shown support for the CSDDD now pushing for amendments that significantly reduce the directive’s scope. Moreover, the eleventh-hour attempts to alter the directive’s provisions to accommodate certain interests demonstrate a worrying disregard for the EU’s collective commitment to sustainable development and human rights.
The failure to secure agreement on the CSDDD before the EU Parliament goes on recess for the upcoming elections is a missed opportunity to set a strong precedent for corporate responsibility in the EU and beyond. It sends a discouraging message to civil society, environmental and human rights organisations, and the broader public, who have long advocated for stronger regulations to ensure that businesses contribute positively to society and the planet.
Carin Hallerström continued:
The Nordic Financial Unions have always championed transparency, accountability, and sustainable practices within the financial sector and beyond. We believe that robust regulatory frameworks, like the CSDDD, are crucial for aligning corporate activities with global sustainability goals and for creating a level playing field where responsible business conduct is the norm rather than the exception.
The Council must reach a compromise within the next two weeks, given that the elections could alter support for the directive.
