Time to effectively act on Human Rights Due Diligence and responsible business conduct

Cover Manif

What is Due Diligence?

Human Rights Due diligence, as proposed in EU law, involves companies systematically assessing and managing the potential risks and impacts of their activities on workers, trade unions, stakeholders and the environment. This includes identifying and addressing adverse effects such as the violation of human rights – including workers’ rights –  and environmental harm within all value chains.

It emphasizes the importance of sustainable and responsible corporate behaviour, providing transparency for workers and trade unions, not just for the public and investors. By adhering to these rules, companies should mitigate risks, promote ethical practices, and contribute to the protection of human rights and a greener economy both within Europe and globally.

What has happened so far?

On 23 February 2022, the European Commission finally proposed a draft legislation on Corporate Sustainability Due Diligence (CSDD), which unfortunately fell far short of what is needed to protect human rights and the environment. The European Parliament helped in securing an important role for trade unions and workers’ representatives in the process. After strong trilogue negotiations, some member states did not adhere to the deal that had been reached in December 2023. For instance, the scope of companies covered under the Directive was drastically lowered in this final phase.

781 days after the Commission’s proposal, on 24 April 2024, the European Parliament will now vote on a final text. 

What’s the ETUC’s position on Due Diligence?

The ETUC has long fought for this achievement and welcomes the adoption of the text. It is a major step in the right direction on the path to securing decent and safe working conditions along the whole supply chains stretching around the world. The ETUC is convinced that the measures will help in holding businesses accountable for the adverse impact of their operations in their supply chains, both inside and outside the EU. The most important features of the new law include: 

  • The important role given to trade unions and workers representatives in due diligence strategies and plan of business.
  • Obligation for more EU and non-EU companies to be held accountable for their operations, incl. SMEs as part of the supply chains.
  • Business civil liability, remediations for victims, strong non regression provisions and review clauses provide assurance that human rights violation by businesses is a no-go.

The ETUC calls for the adoption of the text by the European Parliament on 24 April 2024.

Next steps

The ETUC will actively engage in a follow up process after the adoption of the CSDD Directive. This includes monitoring the various national implementation phases through its affiliates. At European level, the ETUC will advocate strongly that a review process of the Directive must adequately take the achievements and the shortcomings of the law into account. 

MORE INFORMATION: