The EU Parliament has passed the new directive on corporate due diligence by 374 votes to 235 with 19 abstentions (trade-e-bility reported on the weakened EU supply chain law). Here is a summary of the most important points:
- Companies and their upstream and downstream partners (e.g. suppliers and partners in the areas of production and distribution) are obliged to prevent, mitigate or remedy negative impacts of their activities on human rights and the environment.
- If necessary, small and medium-sized enterprises with which the above-mentioned companies do business must be supported so that they can fulfil the new obligations.
- Member States shall set up online portals to provide companies with information on due diligence.
- A network of supervisory authorities carries out investigations.
- Penalties can include being named and shamed or fines of up to 5% of the company's global net turnover.
- Companies are liable for damages caused by abreach of their duty of care and must fully compensate those affected.
Next steps: The directive must be approved by the Council before it can be signed and published in the Official Journal of the EU. It will enter into force 20 days after publication.
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Is your company affected by the CSDDD? Take timely precautions now: The trade-e-bility management consultancy will work with the responsible employees in your company to set up a sustainability management system in small steps that will equip you for the introduction of the new requirements. Christopher Blauth and Jens Haasler will be happy to answer your questions. You can request a non-binding orientation meeting at beratung@trade-e-bility.de.
