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Human Rights Sustainability Due Diligence Law

After overcoming years of negotiation hurdles, the European Parliament has voted 374 to 235 to adopt the Corporate Sustainability Due Diligence Directive (CSDDD), marking a significant step towards mandating companies to address their negative impacts on human rights and the environment. This decision follows the rejection of an earlier version by member states in the EU Council, underscoring the complexity and contentious nature of the legislative process. The directive, which now awaits formal approval from the Council, began its journey in 2020 with studies by the European Commission on sustainable corporate governance and supply chain due diligence, culminating in a proposed draft in February 2022. Despite facing opposition and setbacks, compromises were made, leading to a revised version of the CSDDD that raised thresholds for company coverage and phased in implementation over several years. Lead MEP Lara Wolters described the vote as a milestone for responsible business conduct, highlighting the directive’s aim to combat exploitation and promote sustainable practices.

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