30 Mar 2023 1 minute read
Samuel Garcia Nelen wrote an article for Tijdschrift Ondernemingsrecht on the EU proposal for a Directive on Corporate Sustainability Due Diligence (in English).
The EU proposal for a Directive on Corporate Sustainability Due Diligence (the CSDDD) lays down rules on obligations for companies regarding actual and potential human rights and environmentally adverse impacts with respect to their own operations, those of their subsidiaries, and the value chain operations carried out by their established business relationships, as well as rules on liability for violations of these obligations. The CSDDD is a result of the European Commission's initiative on sustainable corporate governance.
The original proposal for a CSDDD was submitted by the European Commission to the European Parliament and the European Council on 23 February 2022 (the Commission Proposal). After a period of review and negotiations, the Council reached political agreement on a revised text for the CSDDD by agreeing on a 'general approach' on 1 December 2022. Based on this general approach, the Council will begin negotiations with the European Parliament. The general approach consists of a significantly revised proposal for a CSDDD (the Political Compromise).
The article explains the background of the CSDDD, highlights some observations regarding the Commission Proposal and the main changes as envisaged in the Political Compromise, and touches on the interaction between the CSDDD and other EU initiatives in the field of corporate sustainability, the interaction with other Dutch corporate law developments, and the expected next steps in the legislative process.
Read the full article from the Wolters Kluwer Dutch Company Law Journal (Tijdschrift Ondernemingsrecht) here.
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