BRUSSELS – European Union (EU) member states are seeking concessions which would mean fewer companies are initially bound by due diligence proposals to make companies liable for human rights and environmental issues in their global supply chains.
The Council of the EU, which represents the member states and has the power to adopt, amend or reject laws, wants to double the threshold size of companies for which the legislation would apply when it first comes into effect.
Under the EU Corporate Sustainability Due Diligence (EU CSDD) directive, all large companies in the EU – and non-EU companies with a significant turnover in Europe – will need to disclose data on the impact of their activities on people and the planet.
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