Reviewing The EU's Corporate Sustainability Due Diligence Directive.

Reviewing The EU's Corporate Sustainability Due Diligence Directive.


In a significant stride towards promoting corporate accountability and sustainability, the European Parliament recently approved the proposed EU Corporate Sustainability Due Diligence Directive (CSDDD) on April 24, 2024. This landmark legislation aims to compel large companies to prevent and address human rights and environmental abuses within their global supply chains. Human Rights Watch heralded the decision as a pivotal moment in holding corporations accountable for their actions.


The timing of the Parliament's vote on April 24th holds profound significance, coinciding with the 11th anniversary of the tragic Rana Plaza building collapse in Bangladesh. The devastating incident claimed the lives of 1,138 garment workers and injured thousands more, serving as a poignant reminder of the urgent need for regulatory measures to prevent similar catastrophes.


Under the CSDDD, large companies with over 1,000 employees and a net worldwide turnover exceeding €450 million will be mandated to conduct due diligence on human rights and environmental practices across their operations and supply chains. This includes assessing and mitigating risks associated with forced labour, environmental degradation, and other abuses. Regulators will be empowered to take enforcement actions against companies failing to meet these obligations, underscoring the imperative of corporate accountability.


The proposed directive represents a collaborative effort between rights groups, trade unions, and advocacy organisations, who have long campaigned for robust legislation to address corporate abuses in global supply chains. Despite facing opposition and lobbying efforts from certain sectors, the resilience of these movements has been instrumental in advancing the CSDDD's objectives.


However, the legislative journey has not been without challenges. The scope of the CSDDD was significantly narrowed by the governments of France, Italy, and Germany, limiting its applicability to very large corporations and excluding certain sectors. Nevertheless, the approval of the text by the European Parliament's Legal Affairs Committee and subsequent endorsement by EU ambassadors signal progress towards enhanced corporate accountability.


Looking ahead, the CSDDD requires final approval by ministers of EU member states, with the ministerial vote expected to occur in late May. Once ratified, the directive will usher in a new era of corporate responsibility, setting a precedent for other jurisdictions to follow suit.


For Galore, a pioneering force in ethical fashion and sustainability, the CSDDD aligns with our core values and mission. Our Galore Digital Passport (DP) offers a transparent and traceable solution for brands to ensure compliance with regulatory requirements and uphold ethical sourcing and production practices. As the legislative landscape evolves, Galore remains committed to driving positive change in the fashion industry and fostering a more sustainable future for all.


The approval of the EU Corporate Sustainability Due Diligence Directive marks a watershed moment in the pursuit of corporate accountability and sustainability. 

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