Press release

CSDDD: EU's due diligence law vote should drive supply chain sustainability efforts

April 24, 2024

April 24 – The European Parliament has today voted to adopt the Corporate Sustainability Due Diligence Directive (CSDDD), following months of negotiations between the European Union (EU) institutions and member states.

“Ensuring that corporations take responsibility for preventing and managing the environmental, labour, and human rights impacts of their supply chains is key to global sustainable development efforts. The adoption of the CSDDD is a step in the right direction”, Suzy H. Nikièma, Director of Investment at the International Institute for Sustainable Development (IISD) said.

“However, the watered-down nature of the final directive compared to the original proposal is concerning. Now, only companies with more than 1,000 employees and a net turnover of over EUR 450 million EUR annually are within the scope of the rules, compared to 250 employees and a net turnover of EUR 40 million as the threshold for high-impact sectors in the original text.

Due diligence initiatives, such as the CSDDD, will only truly deliver their promised sustainability benefits if they address the unique needs of the suppliers in the countries where most of these requirements will be applied. If we get the implementation right, due diligence regulations should help generate genuine responsible investment in developing countries.

European policy-makers must now focus on providing the technical support and resources necessary for local suppliers in developing countries to comply, which includes making sure that the large international companies in scope of the CSDDD take their share of the responsibility for this crucial work.”

Media Contacts

Suzy H. Nikièma, Director of Investment, IISD:
Isaak Bowers, Communications Officer, Investment, IISD:

About IISD

The International Institute for Sustainable Development (IISD) is an award-winning independent think tank working to accelerate solutions for a stable climate, sustainable resource management, and fair economies. Our work inspires better decisions and sparks meaningful action to help people and the planet thrive. We shine a light on what can be achieved when governments, businesses, non-profits, and communities come together. IISD’s staff of more than 250 experts come from across the globe and from many disciplines. With offices in Winnipeg, Geneva, Ottawa, and Toronto, our work affects lives in nearly 100 countries.