Human Rights Watch and other organizations are urging the European Commission and President Ursula von der Leyen to protect the EU’s corporate accountability laws, including the Corporate Sustainability Due Diligence Directive (CSDDD). Von der Leyen’s proposal to reduce reporting requirements for companies by 25% and introduce an “omnibus” bill could weaken these laws, which require large corporations to conduct human rights and environmental due diligence in their supply chains.
Critics of the omnibus bill argue that it could be used to remove important climate and human rights provisions from the CSDDD, with some claiming that compliance costs and reporting obligations are too expensive and hinder business growth. However, data shows that the cost of due diligence for large companies is minimal compared to their revenue, and the EU should prioritize the long-term interests of people and the planet over maximizing profits for a few.
Instead of revisiting these essential laws, the European Commission and member states should work to integrate them into national law and enforce them. The EU should promote a race to the top in protecting human rights, the environment, and climate, while providing companies with clear expectations and guidelines for implementation. As a global leader in holding companies accountable for abuses, the EU should continue to lead the way in corporate accountability.
