CECIMO’s Perspective on the Corporate Sustainability Due Diligence (CSDD) Directive

06 October 2022

Following the European Commission’s proposal for a Corporate Sustainability Due Diligence (CSDD) Directive presented in late February 2022, we acknowledge the giant step in establishing an EU-wide harmonised framework across companies to foster sustainability and anchor human rights. The proposed Directive provides mandatory guidelines to address adverse human rights (forced labour) and environmental impacts, bringing transparency and a level playing field.

Companies will have to bear the operating costs for the due diligence procedures and the transition costs imposed by governments to identify, prevent or mitigate, terminate, and account for adverse human rights and environmental impacts. In the same vein, companies that fail to conduct effective due diligence or to implement preventative measures will address both administrative penalties and civil liability.

Many companies are already upholding their respective responsibilities to improve their supply chain. Therefore, we believe that the policy framework should shift from the punitive nature of the provisions to a more solution-oriented one, recognising that companies can be catalysts for the positive sustainability transition...