ESG & Investing
EU Lawmakers ‘Outraged’ After States Block Landmark ESG Law
- Due diligence directive lost backing of Germany, France, Italy
- Negotiators head back to drawing board as CSDDD’s fate unclear
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A European Union law designed to clean up corporate supply chains has been derailed by the bloc’s biggest member states, forcing negotiators back to the drawing board on one of the most consequential pieces of ESG legislation ever attempted.
The Corporate Sustainability Due Diligence Directive would expose companies to legal liability if they fail to address environmental or human rights abuses in their value chains. Parliament and national representatives had reached a provisional agreement in December, only for key member countries to withdraw their support on Wednesday.