Negotiators in the European Parliament on the Corporate Sustainability Due Diligence Directive (CSDDD) reached agreement on the main elements of the text on the night of Monday 17 April to Tuesday 18 April. They are thus preparing to vote on the report by Lara Wolters (S&D, Dutch) in the Committee on Legal Affairs, probably on 25 April. The report could then be voted on in plenary session at the end of May, according to Ms Wolters.
As we wrote a few hours before the agreement (see EUROPE 13163/1), the ambition of the text is to be higher than that of the EU Council, with a wider value chain, including the placing on the market of a product. The due diligence should also include checks to ensure that the marketing of the product cannot have adverse effects.
The ceilings for the companies concerned are the same as those proposed by the rapporteur and detailed by EUROPE (see EUROPE 13163/1), i.e. lower than those adopted by the EU Council (see EUROPE 13075/1).
In the event of non-compliance with the Directive’s obligations, these companies will be liable in court for the damage they have caused or contributed to, despite the potential existence of contractual clauses with a trading partner involved in the damage, Parliament negotiators believe at this stage.
Another important element is that the variation of a part of the remuneration of company directors according to the respect of their transition plan is also maintained (for companies with more than 1,000 employees), according to the agreement reached.
In the latest version of the compromise amendments obtained by EUROPE, an Article has been added, entitled “Single Market Clause”, which requires Member States to coordinate during the transposition of the Directive for further harmonisation. The groups also added: “The Commission shall consider, six years after the entry into force of this Directive, whether changes to the level of harmonisation of this Directive are required to ensure a level-playing field for companies in the Single Market, including whether the provisions of this Directive could be converted into a Regulation”.
See the latest compromise amendments: https://aeur.eu/f/6dc (Original version in French by Léa Marchal with Anne Damiani)