The Economy for the Common Good (ECG) has joined other 35 organisations present at European and global level reacting to three key concerns to the proposed compromised text on the Corporate Sustainability Due Diligence Directive (CSDDD):
“1.The proposed compromise allows companies to [continue buying supplies even if there is a “severe” human rights or environmental risk when “no available alternative to that business relationship exists and the termination would cause substantial prejudice to the company.”]
2. We are concerned about how the prioritisation concept is introduced in this compromise text. Our organisations, along with over 200 NGOs, called for the CSDDD to be aligned with International Standards, such as the UN Guiding Principles on Business and Human Rights (UNGP) or the OECD Guidelines. This includes integrating risk-based and prioritisation approaches, to ensure companies address the most severe risks first.
3.The clarification of the role of directors in overseeing a company’s due diligence strengthens the due diligence approach and prevents corporate responsibility or compliance departments from operating in a silo. This element should not be underestimated and should be maintained. The involvement of directors and boards is paramount to ensuring that companies are able to take the necessary strategic decisions with regard to the
management and oversight of sustainability risks and impacts.
With these concerns in mind, and to avoid having the CSDDD become a paper tiger with little impact or substance, we would be eager to meet you and discuss the rationale behind these propositions, in the hope of working together towards effective solutions.”
Image credits: @hasan-zahra / pexels
