EU CSDDD Talks Stall: Fines Loom for Businesses' Environmental Neglect
Negotiations over the Corporate Sustainability Due Diligence Directive (CSDDD) continue in the EU. Rapporteur Lora Wolters voiced concern about the delay in agreement among member states. The directive, initially targeting large companies, could impose significant fines for environmental neglect across business value chains.
The CSDDD aims to hold companies accountable for their environmental impact and human rights abuses in their global operations and supply chains. Initially, it would apply to large EU limited liability companies with over 500 employees and a global turnover exceeding €150 million. After two years, smaller companies in 'high impact sectors' with a global turnover over €40 million would also be included.
EU directives set goals, leaving member states to decide how to achieve them. The CSDDD's implementation would be no different. However, the exact states lagging in agreement remain unclear, as the legislative process continues with efforts to simplify and delay transposition deadlines. Officials hope to finalise the directive by late 2025 or early 2026.
The CSDDD's potential impact on businesses is significant, with substantial fines for environmental failures. Despite ongoing negotiations, its implementation remains uncertain, with a final agreement expected by late 2025 or early 2026.
