14 June 2024
The Corporate Sustainability Due Diligence Directive beyond Europe
The CSDDD is a game changer that forces a large number of European States to level the legislative landscape with regard to corporate responsibility for human rights and environmental impacts, as well as in relation to liability and access to justice. And yet, its reach throughout global “chains of activities” will most likely bring important hurdles for implementation including in relation to the scope of human rights covered in practice; the need for effective capacity-building in transnational chains of activities; the need for a more proactive dialogue and cooperation between the EU and other States; and last but not least, in ensuring consistency between the national implementation of the CSDDD and international and regional human rights obligations. Continue reading >>
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10 June 2024
From Paper to Practice
The CSDDD requires companies to carry out due diligence on actual and potential human rights and environmental adverse impacts. This means companies have to identify harmful impacts in their value chains and take appropriate measures to prevent, mitigate, or bring them to an end. In this two-part blog post, we will look at which environmental impacts are covered by the CSDDD and how they are addressed. In this second part, we will discuss how the CSDDD negotiations influenced the design of its environmental provisions and identify missed opportunities. We will conclude by analysing what factors are important to ensure that transposition and implementation remain true to the CSDDD’s objectives. Continue reading >>
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10 June 2024
New Wine in Old Bottles
The CSDDD requires companies to carry out due diligence on actual and potential human rights and environmental adverse impacts. This means companies have to identify harmful impacts in their value chains and take appropriate measures to prevent, mitigate, or bring them to an end. In this two-part blog post, we will look at which environmental impacts are covered by the CSDDD and how they are addressed. Our intention is to provide a starting point for the debate by summarising the outcome of the legislative process, explaining how we got there, and offering some thoughts on where we might go next. Continue reading >>
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01 June 2024
Dividing the Indivisible
The absence of a number of important human rights instruments from the EU’s Corporate Sustainability Due Diligence Directive, notably for indigenous peoples’ and migrants’ rights, are serious omissions and must be rectified at the EU level during the first review of the directive. Given the status of the CSDDD as a directive, Member States also have the freedom to add these missing instruments during national transposition and should do so in order to further honour their commitments under the UNGPs. Continue reading >>
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10 May 2023
Effective Human Rights Due Diligence Ten Years After Rana Plaza?
Ten years after the deadly Rana Plaza disaster with 1135 dead and more than 2000 injured workers, a complaint has been made for the first time on the basis of the German Act on Corporate Due Diligence Obligations in Supply Chains (Lieferkettensorgfaltspflichtengesetz, LkSG) to the Federal Office for Economic Affairs and Export Control (Bundesamt für Wirtschaft und Ausfuhrkontrolle, BAFA). The complaint argues that IKEA and Amazon failed to exercise due diligence under the LkSG by refusing to sign the Accord on Fire and Building Safety in Bangladesh (Bangladesh Accord) and its successor, the International Accord for Health and Safety in the Textile and Garment Industry (International Accord). In this post, we explore the relationship between the Accord and human rights due diligence and argue that joining the Accord is essential for fulfilling the due diligence obligations under the LkSG. We argue that Amazon seems to have violated the LkSG prima facie while IKEA’s claim would have to be assessed in-depth by BAFA. Continue reading >>
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26 October 2022
A Defining Moment for the UN Business and Human Rights Treaty Process
The ongoing process to negotiate a UN treaty on business and human rights has its 8th annual session this week in Geneva. Though embraced by many NGOs, this initiative has so far failed to secure widespread support amongst states with wide divergences remaining regarding the proposed instrument’s objectives and design, as well as its relationship to the UN 2011 Guiding Principles on Business and Human Rights, an earlier soft law instrument championed by governments, businesses and international actors. Yet there may be light on the horizon. Continue reading >>
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14 June 2022
Moving Beyond Token Participation
The concept of human rights due diligence was developed over the past decade as a way for companies to grapple with adverse human rights violations and impacts connected to their business practice, including within their value chains. In February of this year, the European Commission published a proposal for European Union-wide mandatory human rights due diligence for companies that fall under its scope. For such legislation to succeed in advancing the rights of the most affected and to lead to better human rights outcomes for rights-holders, it is crucial to anchor such laws and regulations with not only the perspective of rights-holders but their ongoing involvement. To do otherwise would miss an invaluable opportunity to improve the landscape of business and human rights to center rights-holders in the years to come. Continue reading >>
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16 March 2022
Enforcing Due Diligence Obligations
The Corporate Sustainability Due Diligence Directive creates an innovative mix of enforcement mechanisms. It relies on both administrative oversight and judicial enforcement through civil liability. Additionally, accountability of businesses for affecting stakeholder interests is strengthened by a specific environmental, social, and corporate governance duty of care for directors and obligations to link directors’ pay to climate obligations, thus ensuring that directors need to steer businesses in light of stakeholder interests. This system has the potential to effectively oblige companies to respect stakeholder interests, although some weaknesses, especially in access to justice, remain. Continue reading >>
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15 March 2022
Due Diligence Around the World
On 23 February 2022, the EU Commission released its draft Directive on Corporate Sustainability Due Diligence (CSDDD). It follows – and seemingly takes inspiration from – several national mandatory human rights and environmental due diligence (HREDD) laws, notably in France, (“LdV”) Germany (“GSCDDA”) and Norway (“Transparency Act”). It provides a strong legal basis and innovations to enhance corporate accountability, to strengthen stakeholder value and to create a European and possibly global standard for responsible and sustainable business conduct. Continue reading >>
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21 April 2021