BRUSSELS – European Union (EU) legislation to make companies liable for human rights and environmental issues in their supply chains look set to apply to more companies – but later – than originally envisaged.
That was the outcome of a compromise agreement by the influential legal affairs committee of the European Parliament on the EU Corporate Sustainability Due Diligence (EU CSDD) directive.
It enabled MEPs on the committee to vote 19-3, with three abstentions, in favour of the directive this week, paving the way for a final plenary vote in June. NGOs broadly welcomed the deal but expressed concerns that concessions could turn the directive into a “paper tiger”.
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