The Corporate Due Diligence Directive is one step closer to coming into force. MEPs voted in favour of the provisional agreement on this text on Wednesday 24 April (374 votes in favour, 235 against and 19 abstentions). The last-minute changes by the EU Council have left “a bitter taste” in the mouth of the text’s rapporteur, Lara Wolters (S&D, Dutch), in her own words. However, she said she was pleased that the legislative process was nearing completion and that the directive would soon come into force.
The EU Member States have amended the scope of the companies covered by the directive and introduced a progressive implementation timetable, modifying the agreement initially reached with Parliament (see EUROPE 13372/9).
The directive will start to apply in 2027 to companies with more than 5,000 employees and a worldwide turnover of more than €1.5 billion. These thresholds will then be reduced until 2029, when companies with more than 1,000 employees and sales in excess of €450 million will be covered.
Many human rights and environmental organisations have welcomed this agreement, which was validated exactly eleven years after the collapse of the Rana Plaza. The European Federation of Sports Industries (FESI) also welcomed the vote, considering the final text to be better than previous ones. On the other hand, Eurochambres regretted that the text would “negatively affect supply chains and competitiveness”.
To see the voted text: https://aeur.eu/f/bd3 (Original version in French by Léa Marchal)