On 23 February 2022, the European Commission proposed a Directive on Corporate Sustainability Due Diligence, mandating large EU companies to identify, prevent, and mitigate adverse human rights and environmental impacts within their operations, subsidiaries, and across their value chain. This Directive is notable for its extraterritorial reach, requiring companies to oversee not just their direct operations but also those of their value chain partners globally. This approach is designed to prevent unethical practices from being outsourced to other jurisdictions, although it has sparked debate over its legal, economic implications, and potential unintended effects.

As the proposal moves through the Trilogue process, ERCST is contributing to the debate with a report that reviews relevant literature and evaluates arguments for and against the Directive’s wide scope. The report’s key findings, based on expert consultations and literature review, were shared in a roundtable aimed at fostering dialogue among diverse stakeholders and decision-makers, encouraging a well-rounded discussion on the Directive’s implications.

Agenda    ERCST Slides     Recording