Éamon Ó Cuív’s Post

Today, the EU Member States failed to approve the Corporate Sustainability Due Diligence Directive (CSDDD), stalling the much-needed law that helps address the acute needs of people, the environment and businesses within and beyond the EU. After a four-year legislative effort to establish a robust law curbing corporate abuses on human rights and the environment, the Member States in the Council have delayed endorsing the deal they themselves agreed on in negotiations with the European Parliament and the Commission. The decision follows the short-sighted plan of Germany to abstain from the vote and the last-minute attack by France to significantly weaken the law by proposing to remove the majority of companies from its scope. The surprising negative turn in the Council contradicts the demands of hundreds of companies, financial institutions, academics, civil society organisations, faith leaders and others, who have supported the due diligence law over the past two years. 🗣️ “EU governments’ last-minute sabotaging and postponement of this new rulebook not only disregard the lives, communities, and ecosystems affected by destructive business practices, but also deal a blow to the EU’s credibility as a legislator,” said Uku Lilleväli, Sustainable Finance Policy Officer at WWF European Policy Office. “It’s scandalous that, in the 21st century, certain European lawmakers wish to permit companies to ignore human rights and environmental integrity, all under the guise of short-term profits. Let's be clear: the law wouldn't burden companies with unnecessary red tape; instead, it would secure a level playing field and help firms navigate necessary transitions in an informed and responsible manner.” Read our reaction in more detail here: https://lnkd.in/efK_z8_g #CSDDD

🔹NEWS OVERNIGHT: EU Parliament Approves CSDDD On April 24, 2024, the European Parliament passed the Corporate Sustainability Due Diligence Directive (CSDDD). 🔹 What is the CSDDD? The CSDDD mandates large EU and non-EU companies to conduct due diligence on human rights and environmental impacts within their operations and those of their business partners. 🔹 Next Steps and Preparation: Following final approvals in May, EU nations will incorporate the CSDDD into national law, effective from 2027. Companies should prepare by following upcoming guidance from the European Commission and updating their due diligence practices. 🔹Key Requirements of the CSDDD: - Timing: Implementation will phase in over 3 to 5 years based on company size and turnover. - Scope: Applies to EU companies with over 1,000 employees and €450 million turnover, and non-EU companies with €450 million turnover in the EU. - Chain of Activities: Includes upstream activities and certain downstream activities, except disposal. Different rules apply to financial undertakings. - Stakeholder Engagement: Requires extensive engagement beyond traditional industry initiatives. - Enforcement and Liability: National authorities will monitor compliance and can impose sanctions. Companies can be held liable for damages caused by non-compliance. This directive represents a significant move towards ensuring corporate accountability for environmental and human rights impacts across the EU.

Wow, this has been the rollercoaster ride of my professional life! After so many surprising twists and turns in this process, I had learned not to celebrate intermediate milestones towards the final adoption of the Corporate Sustainability Due Diligence Directive #CSDDD. That is why I remained silent when the European Parliament passed this historic law last month. Even today, there was a final surprise which endangered the final passage of the law. Especially in the past six months, I feel like I’ve aged six years with the amount of times the directive was dragged off from the gate of hell, as we say in Dutch. But this morning, in a rather unceremonious conclusion (see the video for the lack of fanfare), the CSDDD finally cleared the last hurdle and will now be the law of the land throughout the EU. It will require large companies to take steps against human rights abuse and environmental harm in their value chains. I am immensely proud of the role my team and I have been able to play in this process, with the help of so many dedicated stakeholders. In particular, we have made sure that the requirements for companies are in line with the authoritative standards set by the OECD - OCDE and UN, spelling out for instance that companies should use their leverage over business partners in order to improve the situation for people and planet, rather than cutting ties (this should only be a last resort). In the coming years, we will be working on the national implementation of this groundbreaking law. Cheers to this next step! I know many of you will come along for the ride. https://lnkd.in/ekMHSjic

Today is a BIG DAY, not only for the European Union but for the world 🌎: CSRDDD is finally adopted. For those who do not know what it means, please see a link in the original brilliant post of Gilles Goedhart below, and see a video of what it was for people who did the work in the making. This is why I celebrate the adoption of CSRDDD as usual, remotely, with the Netherlands 🇳🇱: In 2019 I jumped into “Business Responsibilities for Human Rights” and “CSR, Diversity & Inclusion” studies at Copenhagen Business School, where I am still a part-time student in my 50s, finishing my pending “Managing People in Multinational Corporations” Business School, after years of working as a stress management professional and expat support consultant internationally, being based in Sweden. After witnessing all the tragedies of expat families and having first-hand experience of being prohibited from working in two countries as a corporate following spouse in my 20s, I tapped into a correlation between expat spouse, or repatriate mental health and international and universal human rights to work and practical access to those rights expats miss, causing disasters practically for women destined to live after such assignments in the European 🇪🇺 In the walls of Copenhagen Business School, I gave birth to my second child: Sustainable Expatriation, which was destined to get expat karma as well as its mom. An impact startup, Sustainable Expatriation Foundation. I changed many countries remotely and learnt all the limitations of European freedoms, moving my work from Sweden 🇸🇪 to Denmark 🇩🇰 and from Denmark to The Netherlands 🇳🇱. I had to change three countries in six months as well as two co-founders because of the banks! I will never do a startup in Europe, nor will start another foundation after all the inequalities of the system I witnessed here. But, I will miss the Hague I still love ❤️, where the hope for expat justice was born and where I did not manage to cope with banking discrimination. In Seotwmber 2023 I took a decision to liquidate Stichting Sustainable Expatriation (foundation) which was meant to unite businesses to solve the overlooked human rights inequalities of corporate spouses globally 🌐 In short, I did all I could and am after needed resilience, restarting my work as a freelance consultant. God did not leave me without support on my journey to justice, and when one door is closing, a new one always opens up. Long story short, I still consider the Netherlands 🇳🇱 a expat attraction role model for the West and want to pass over on this day my love ❤️ and sincere gratitude ✨🙏✨ to all my supporters around the world, especially in the Netherlands 🇳🇱: you know you names. News about my work and the future of Sustainable Expatriation soon. Happy, relaxing and peaceful weekend to all 🌞🕊🙌✨☀️ #CSRDDD #sustainableexpatriation #accesstohumanrighttowork #expathumanrights #socialsustainabilityofglobalisation

Finally, the EU Member States got their act together and reached an agreement on the Corporate Sustainability Due Diligence Directive. The price of the agreement was a significant dilution of the level of ambition of the #CSDDD. The scope of the directive will be limited to companies with over one thousand employees instead of five hundred. High-risks sectors were deleted entirely and the legislation's entry into force will be further delayed. The behaviour of the Council and Member States in recent months has been reprehensible and damaging to the credibility of EU decision-making. Instead of respecting the December trilogue agreement, already a balanced compromise, Member States engaged in endless rounds of horse-trading and last-minute attempts to water down the legislation. Despite this sabotage by the FDP party in the German government, Italy, France, Finland and others, the core of the directive remains intact. The UN Guiding Principles on Business and Human Rights will be, for the first time, codified in EU law, and businesses will be obliged to conduct environmental and human rights due diligence in their value chains. Beneficiaries of CSDDD will be the millions of people in modern slavery and other victims of corporate negligence and abuse. Responsible companies will also benefit from a level playing field and businesses will finally get more engaged in the fight against climate change. Next, the Council of Ministers will formally adopt the agreement, after which it will be voted in the Legal Affairs Committee of the European Parliament with a final vote in the plenary in April.

When you no longer hope for the unexpected, it happens! The EU Member States have surprisingly managed to reach an agreement on the Corporate Sustainability Due Diligence Directive (#CSDDD or #CS3D), though with significant concessions. The directive’s reach has been narrowed to companies with more than one thousand employees, removing the high-risk sectors and delaying the legislation’s enforcement. Despite these changes, the directive’s core remains robust. It transposes the UN Guiding Principles on Business and Human Rights into EU law for the first time, mandating businesses to conduct due diligence regarding environmental and human rights within their supply chains. This directive is a critical step forward for the millions affected by modern slavery and corporate negligence, ensuring a level playing field for conscientious companies and advancing the global fight against climate change. At least, that is the promise, but haven’t we heard that before? With the Council of Ministers set to formalize the agreement soon, followed by the necessary procedural votes in the European Parliament, we might soon start a new era in corporate sustainability within the EU. In the coming days, I will analyze and publish insights on what this directive might mean for smallholder value chains. It’s crucial to ensure that the CSDDD does not inadvertently harm smallholders, similar to the unintended effects with the implementation of the European Union Deforestation Regulation (EUDR). Stay tuned for an in-depth look at how these changes could shape the future for smallholder farmers and the broader agricultural landscape. #smallholderfarmers #sustainability

In this month’s ‘In Focus’ edition, we examine the twists and turns of the EU's Corporate Sustainability Due Diligence Directive (CSDDD), the recent last-minute political upheaval and its implications going forward. 👉https://lnkd.in/ec6BPhwB Eleventh-hour withdrawals by several countries necessitated reopening negotiations and amidst rescheduled votes and significant concessions, the directive's scope was narrowed. Initially intended to merge due diligence with governance, the final text sidelines governance aspects, omitting provisions on director duties, remuneration linkage, and shareholder engagement. Nevertheless, the CSDDD remains groundbreaking.  Unlike many other corporate sustainability rules, the CSDDD does not just mandate disclosure, but actual operational changes. Companies must proactively prevent adverse impacts on human rights and the environment, aligning with the Paris Agreement's climate goals. Read the full article here – https://lnkd.in/ec6BPhwB So, should we lament the governance setbacks, or view this as an opportunity to address sustainable corporate governance independently? We invite you to share your thoughts and comment on the question below:⬇ Q: Should the EU pursue this topic further? A) Yes, now is the time for a new proposed legislation on sustainable corporate governance or B) No, there is already enough national and international soft and hard law on corporate governance, making additional EU legislation redundant Marleen Och #corpgov #CSDDD

🌟 📣 BREAKING NEWS: CSDDD AGREED BY COUNCIL OF THE EU📣 🌟 Today EU Member States approved an updated compromise text on the Corporate Sustainability Due Diligence Directive (CSDDD), during the COREPER (Committee of the Permanent Representatives of the Governments of the Member States to the European Union) meeting. The long-awaited vote comes after several postponements. 📄 WHAT HAS CHANGED? Key changes Member States agreed on in the compromise text include: 🟣 Reduced scope: The scope now includes companies with 1000 employees (up from 500) and a turnover of at least EUR 450 million (up from EUR 150 million), reducing the number of EU and non-EU companies covered. 🟣 High-risk sector approach deleted: The approach to phase in companies that do not meet the scope criteria but operate in high-risk sectors has been removed. 🟣 Staged application approach introduced: Different timeframes for application of the Directive will apply based on company size and turnovers, with a 3-year period for companies with over 5000 employees and EUR 1500 million turnover, 4-year period for those with over 3000 employees and EUR 900 million turnover and a 5-year period for companies with over 1000 employees and EUR 450 million turnover. 🟣 Requirement to conduct downstream due diligence limited: The definition of downstream activities has been limited to business partners carrying out activities for or on behalf of the company, with the reference to ‘indirect relationships’ deleted. The reference to product disposal has also been deleted. 🟣 Implementation of climate transition plans: the obligation to implement climate transition plans has been amended to be an obligation of means, rather than results. 🟣 Civil Liability: a period of a minimum five years to bring claims was established. Trade unions and NGOs can still bring claims under certain conditions, without prejudice to national rules of civil procedure. ➡ WHAT HAPPENS NEXT? The revised CSDDD text will need to be approved by the EU Parliament by the end of April 2024. According to preliminary data analysed by the Centre for Research on Multinational Corporations (SOMO) cited by Euractiv “just 5,421 companies will now fall under the current draft’s scope” with a 67% reduction from the number of companies initially in-scope based on the text of the provisional political agreement reached in December. Even if the current text represents a less ambitious compromise (compared to the Dec 13 text), the probability of EU-wide legislation mandating corporate human rights and environmental due diligence is a fundamental step forward for business, people and planet. As Prof. John Ruggie (quoting Christian Reus-Smit) once noted ‘politics in its deeper sense “lies at the intersection of instrumental and ethical deliberation and action”..’ and the collective efforts of the last few weeks have shown that, with perseverance, this intersection is possible. #bizhumanrights #esg #susty

The fate of the EU’s Corporate Sustainability Due Diligence Directive (#CSDDD) will be decided today (February 9) in a European Council vote, but many worry the bill will fail without Germany and Finland’s support. The EU Council and Parliament reached a provisional deal in December to make #SupplyChainDueDiligence a legal obligation for companies operating in the EU. The law appeared headed for easy approval, but conservative debates in Germany and Finland have since cast doubt on its future. Read our analysis in CSO Futures https://lnkd.in/etpfyi5a #CS3D #ChiefSustainabilityOfficer #SustainabilityRegulation

⚡⚡⚡ EU member states approved the adoption of the EU Corporate Sustainability Due Diligence Directive 💡 EU member states brought an end to a weeks long saga, approving the adoption of the EU Corporate Sustainability Due Diligence Directive - a groundbreaking law that will make history by regulating how large companies active on the EU market conduct sustainability due diligence across (big parts of) their value chains, for a wide range of human rights and environmental impacts. 🚦 After several aborted attempts in past weeks, EU Council vote last friday was successful due to support from key EU member states, in particular Italy and France, whose vote was previously uncertain. 🤝The required qualified majority was found thanks to key diplomatic efforts and significant last-minute concessions agreed by the Belgian Presidency of the Council of the European Union 2024. Beyond the widely reported list of concessions granted last week, ultimately in the final version of the law as voted today, the revenue threshold for applicability was also raised, from 300 to 450 million EUR. ➡ Next: the law now needs to pass a final adoption vote by European Parliament. JURI committee vote could possibly follow as early as March 19th, with Parliament’s plenary vote expected during the April 22-25 plenary. ❗ While the EU Council was widely considered the biggest hurdle, the Parliament vote remains highly uncertain. Its outcome will be largely determined by whether or not conservative groups' determination to block the law will be somehow tempered by the significant concessions granted in past weeks. ⭐ The intense battle that unfolded over the last weeks, resulted in a watering down of the law. Nevertheless, it remains very ambitious, and it is clear that the core of the unique law is preserved: 👉 CSDDD will regulate in clear and detailed terms how the largest companies conduct value / supply chain sustainability due diligence, mandating due diligence based on existing international due diligence standards 👉CSDDD makes those companies liable for impacts they cause 👉the adoption of this law arguably remains the most impactful policy development since the adoption of global - voluntary - due diligence standards. #cs3d #csddd #sustainabilityreporting