Governments support stripped-down corporate due diligence law

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🗞️ Driving the news: After weeks of uncertainty, the European Union's member states have voted in favor of new legislation requiring companies to ensure their supply chains are free from environmental harm and labor abuses
• This Corporate Sustainability Due Diligence Directive (CSDDD) aims to impose checks on companies to prevent profits from human suffering and environmental damage

🔭 The context: The agreement on the CSDDD was initially reached in December, but faced opposition from Germany and Italy, causing doubts about its future 
• The legislation has now gained approval after modifications, including the removal of provisions that would allow trade unions to sue non-compliant firms and tripling the threshold to companies with over €450 million in worldwide turnover

🌍 Why it matters for the planet: The directive represents a significant step towards ensuring corporate accountability for environmental and social impacts within the EU 
• It aims to prevent corporations from exploiting labor and causing environmental harm, contributing to a more sustainable and ethical global economy

⏭️ What's next: The directive still requires approval from the European Parliament, with a vote anticipated in April 
• If passed, it will mark a major shift towards corporate sustainability and could set a precedent for similar legislation worldwide

💬 One quote: "It is high time to take a big step towards a fairer economy of the future," said Lara Wolters, the parliament negotiator, heralding the Council's endorsement as a victory for environmental and social accountability.

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