Slow progress on Due Diligence Directive


On 11 July, negotiators from the European Parliament and the EU Council met to discuss the Corporate Sustainability Due Diligence Directive (CSDDD) as part of the interinstitutional negotiations known as trilogues.

Member states and the Parliament have already each adopted their positions and are now trying reach an agreement that would allow them to adopt the legislation before the European elections in June 2024. However, it is unclear if this is realistic as there are still significant disagreements on key issues. This EURACTIV article outlines some of the sticking points.

There are also concerns that the upcoming general election in Spain, the country which currently holds the EU Council presidency, may impact the process too. In the event of the expected centre-right victory, negotiations might be slowed down, as the Spanish EPP group was not happy with the Directive when it was voted in the European Parliament.

Meanwhile, the NGO OECD Watch published a new policy brief comparing how the different provisions proposed by the Commission, Council, and Parliament align with the updated OECD Guidelines on Multinational Enterprises. The brief finds that the Parliament’s position is in closest alignment with the Guidelines. It recommends that trilogue negotiators select elements of the three positions that maximise alignment with the Guidelines, drawing most heavily from the Parliament’s position.