Green light for directive fining companies that harm human rights and the environment

The European Parliament has approved the Corporate Sustainability Due Diligence Directive (CSDDD or CS3D), which establishes fines and sanctions for large companies that violate human and environmental rights throughout their value chain. This standard addresses problems such as slavery, child labor, labor exploitation, loss of biodiversity, pollution and destruction of natural heritage.

The Directive was approved by the European Council on March 15, although with a reduced scope that affects fewer companies, from 16,400 to 5,500 (0.05% of EU companies). Despite this, its impact is significant, especially on human rights in suppliers from developing countries. The standard excludes high-risk companies below certain size thresholds.

The approved version obliges large companies operating in the EU to implement sustainable practices and due diligence throughout their supply chain, from subsidiaries to associates. This turns voluntary responsibilities into legal obligations, and could be enhanced over time as experience is gained.

The approval in the European Parliament, with 374 votes in favor, 235 against and 19 abstentions, is considered a success. Although reduced in scope, it will indirectly affect many more organizations throughout the supply chain, as large companies will pass on these requirements to their partners and suppliers.

Fuente: https://www.eleconomista.es/mercados-cotizaciones/noticias/12784331/04/24/el-parlamento-europeo-da-luz-verde-a-la-directiva-de-diligencia-debida.html