· 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 Union's Corporate Sustainability Due Diligence Directive (CSDDD), aimed at setting sustainability standards for companies, faces significant opposition, jeopardizing its approval
• A compromise aimed at reviving the directive is set for a crucial vote on March 8, amidst a backdrop of diminishing support from key member states
🔭 The context: The CSDDD proposes stringent due diligence requirements for EU companies and their supply chains on environmental, climate, and human rights issues
• After initial support, the draft faced resistance, notably from Germany, leading to doubts about securing a majority vote in the European Council
🌍 Why it matters for the planet: The directive's emphasis on sustainability and corporate accountability could significantly impact environmental protection and human rights within the EU and globally, by holding companies accountable for their entire supply chain
⏭️ What's next: With the EU elections looming in June and a procedural deadline on March 15, the upcoming vote represents a pivotal moment for the CSDDD's future
• Failure to pass could shift the sustainability discourse to a central theme in the upcoming elections
💬 One quote: “The general thresholds of the proposal have been increased...to reduce the number of EU and non-EU companies that would fall under the scope of the directive," from a leaked compromise document, indicating efforts to salvage the directive by reducing its scope.
📈 One stat: The proposed compromise seeks to increase the employee threshold for compliance from 500 to 1,000 and the turnover threshold from €150 million to €300 million, aiming to lessen the directive's impact on businesses.
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