Eurosif: Joint Statement on the Corporate Sustainability Due Diligence Directive (CSDDD)
Today, Eurosif, Accountancy Europe, Finance Watch, WWF, Frank Bold and ShareAction released a joint statement on the Corporate Sustainability Due Diligence Directive (CSDDD). This joint statement highlights the overall support for the European Commission's proposal on the CSDDD. More particular, the signatories support the promotion of environmentally and socially responsible business practices to ensure a long-term perspective that addresses adverse impacts on human rights, society, the environment, and the climate.
Key recommendations of this statement:
To make sure that adverse impacts on human rights, environment, and good governance are properly identified, prevented, mitigated and brought to an end by companies, the signatories recommend to:
- Base the due diligence obligations on existing international standards, such as the UN Guiding Principles on Business and Human Rights (UNGPs) and the OECD Due Diligence Guidance for Responsible Business Conduct and OECD Guidelines for Multinational Enterprises, including responsibilities on anti-corruption and tax, as well as human rights and environmental risks
- Provide more clarity on the definitions, and give additional guidance on the measures that companies are expected to implement human rights and environmental due diligence along their value chains
- Foster a risk-based approach, firmly based on the UN and OECD standards, that requires companies to address and mitigate impacts on the basis of their severity and likelihood of their business relationships; covering the companies’ subsidiaries and global value chains, both upstream and downstream
- Stipulate robust due diligence obligations for financial institutions in consideration of their specificities and various asset classes
- Enable appropriate remedy and enforcement mechanisms, including civil liability, are put in place and promote more meaningful stewardship and engagement with suppliers
- Promote policy coherence of the Corporate Sustainability Due Diligence Directive with other related pieces of legislation.