BRUSSELS (Reuters) – The 27 member countries of the European Union postponed their decision on Friday on the draft directive relating to the “duty of vigilance” of companies in terms of social and environmental impacts.
“The CSDD (Corporate Sustainability Due Diligence) has been removed from the agenda and postponed to a later date which remains to be determined,” announced on X a spokesperson for the Belgian presidency of the EU.
This proposed law, introduced in February 2022 by the European Commission, commits companies to ensuring that their production chain complies with international standards in terms of human rights and environmental protection.
The Parliament, which voted on the text in June 2023, and the European Council reached a political agreement last December on the text which temporarily excludes the financial sector from the scope of the text. The directive must be formally approved this year after negotiations.
A qualified majority of 15 countries (representing 65% of the European population) is necessary in the European Parliament for its adoption.
It was unclear on Friday whether the quorum would be reached, with Germany having announced its intention to abstain.
(Reporting Philip Blenkinsop, Charlotte Van Campenhout, French version Sophie Louet, editing by Kate Entringer)
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