· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on Forbes or enjoy below:
🗞️ Driving the news: The European Council has finally approved the Corporate Sustainability Due Diligence Directive (CSDDD), aimed at creating legal accountability for companies concerning environmental and human rights abuses in their supply chains
• However, the directive has been significantly diluted from its initial draft, leading to disappointment among sustainability advocates
🔭 The context: The CSDDD seeks to establish a standard for corporate due diligence on sustainability, focusing on environmental issues, climate change, and human rights
• It extends liability not just to the actions of the companies themselves but also to their subsidiaries and supply chains, affecting EU-based and certain non-EU companies operating within the EU
🌍 Why it matters for the planet: By holding companies legally accountable for their supply chains, the directive aims to enforce more sustainable and ethical business practices
• This legislative effort represents a significant step towards integrating sustainability into the core operational strategies of businesses, potentially reducing environmental degradation and improving human rights conditions globally
⏭️ What's next: After enduring delays and a watering-down process, the CSDDD now moves to the European Parliament for approval
• Although its scope has been reduced, with fewer companies being affected than originally planned, its passage could still mark a milestone in EU environmental and social governance legislation
💬 One quote: "What followed was 45 days of closed-door negotiations, false starts, and political pressure that was an emotional roller coaster for sustainability advocates." - Jon McGowan, Forbes Contributor.
📈 One stat: The revised scope of the CSDDD now impacts only about 0.05% of businesses operating in the EU, a significant decrease from its initial target.
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