What’s at stake?
Beginning in 2017, several European states including France, Germany and the Netherlands began to adopt versions of human rights due diligence legislation. This created momentum for the European Union (EU) to help level the playing field.
In 2022, the EU began negotiating a draft Corporate Sustainability Due Diligence Directive (CS3D). The draft CS3D represents a significant opportunity to advance better outcomes for people and planet by scaling uptake of quality human rights and environmental due diligence and enhancing corporate accountability for due diligence failures. However, realizing this potential depends on the Directive being firmly grounded in the international standards on sustainability due diligence – the UNGPs and OECD Guidelines. At Shift, we are committed to helping ensure that this happens through our close involvement in the regulatory debate.
What is the process at EU level?
European law-making involves the three EU institutions: the Commission, Council and Parliament. The European Commission released its proposal for a Directive in February 2022. The Council of the EU issued its position on the proposal in a ‘general approach’ in December 2022, and the European Parliament is expected to settle its position in June 2023. The three institutions will then begin joint negotiations on a final law, with the final result expected before the European Parliamentary elections in early 2024.
Once a final Directive is adopted, EU Member States then have a certain period of time to transpose it into their national laws, after which enforcement would commence.
For an up-to-date list of mandatory Human Rights Due Diligence initiatives in Europe, visit the Business and Human Rights Resource Mandatory Due Diligence portal.
Core Resources
Our Analysis of the Debate
3 resources
Designing an EU Due Diligence Duty that Delivers Better Outcomes
What is the CS3D? Starting in 2022, the European Union has been negotiating a draft Directive on Corporate Sustainability Due Diligence (CS3D), with discussions on a final law expected to begin by mid-2023. The draft Directive aims to ensure companies active in the single European market contribute to sustainable development by preventing and addressing negative human rights and environmental impacts. […]
Shift’s Analysis of the EU Commission’s Proposal for a Corporate Sustainability Due Diligence Directive
On 23 February 2022, the European Commission released its ‘Proposal for a Directive of the European Parliament and of the Council on Corporate Sustainability Due Diligence. Its overall objective is to ensure that companies active in the internal market contribute to sustainable development …through the identification, prevention and mitigation, bringing to an end and minimization […]
“Signals of Seriousness” for Human Rights Due Diligence
This discussion draft is intended for the consideration of the European Commission and other stakeholders as the Commission develops proposals on mandatory human rights and environmental due diligence (mHREDD) and considers how national regulators would implement any such legislation. Shift is submitting this draft together with our formal response to DG JUST’s consultation on a […]
Previous Comments and Analysis by Shift
- Rachel Davis’ March 2022 COMMENTS to the European Parliament RBC Working Group on the release of the Commission’s proposal
- Our March 2022 ANALYSIS of the Commission’s proposal for a draft Directive
- Our October 2021 Key Design Considerations for the Enforcement of Mandatory Due Diligence, developed in collaboration with the Office of the UN High Commissioner for Human Rights
- Our August 2021 viewpoint on how legislating a new standard of conduct CONNECTS TO OUTCOMES FOR PEOPLE
- Our July 2021 viewpoint on the relationship between HUMAN RIGHTS AND ENVIRONMENTAL DUE DILIGENCE
- Our June 2021 viewpoint on the need to include SMEs in the scope of new regulations while allowing them APPROPRIATE FLEXIBILITY
- Our April 2021 recap of the mHRDD debate in Europe (see below)
- Our February 2021 RESPONSE to the European Commission’s initial consultation on the need for an initiative on sustainable corporate governance
