The final vote on the EU Supply Chain Directive in the EU Council was postponed due to differences of opinion and Germany's abstention, influenced by concerns from the FDP.
Criticism and scepticism from Italy and smaller EU countries illustrate the challenges involved in reaching a consensus on the implementation of the directive.
The EU Supply Chain Directive, also known as the Corporate Sustainability Due Diligence Directive (CSDDD), is a legislative project of the European Union aimed at obliging companies to review their supply chains with regard to compliance with human rights and environmental standards.
The directive is part of the EU's wider Green Deal and aims to ensure that companies apply sustainable practices throughout their value chain. This includes responsibility for avoiding and minimising environmental impacts and respecting human rights. The EU Supply Chain Directive requires companies to apply appropriate due diligence in their business and supplier relationships to identify, prevent and minimise potential risks.
Current developments regarding the EU Supply Chain Directive:
As part of the European Union's efforts to promote and integrate sustainability into business practices, the EU Supply Chain Directive has taken on a central role. The current debate also includes the question of how compliance with the directive should be monitored and enforced, including possible sanctions for companies that do not fulfil their due diligence obligations.
The latest developments surrounding the CSDDD have led to a delay in the timetable for European legislation. The final vote on the law in the Council of the EU member states was unexpectedly postponed. This decision, announced by the Belgian Presidency, reflects the current challenges and disagreements within the EU regarding this legislative initiative.
A key factor in the delay was the abstention of Germany, which was significantly influenced by the opposition of the FDP. The FDP-led ministries expressed concerns that the directive could lead to "self-strangulation" through overly strict supply chain requirements. This positioning by Germany was crucial as it jeopardised the majority needed for the adoption of the directive in the Council.
In addition to Germany's concerns, other member states, such as Italy and several smaller EU countries, also voiced clear criticism and scepticism. This far-reaching reticence emphasises the complexity of the issue and the difficulties in reaching a consensus on the requirements and implementation of the directive.
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