Wednesday, June 19, 2024

Human Rights Due Diligence: The State of Play in Europe – Shift

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About the EU Corporate Sustainability Due Diligence Directive

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) which was finally adopted in May 2024. During this time, Shift’s focus was on ensuring the CS3D was anchored in the international standards on sustainability due diligence – the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises. Despite limitations with regard to the scope of companies covered under the Directive, and limited obligations with regard to due diligence on downstream impacts, the core content of the final law is substantially aligned with the UNGPs. This will help make sure the Directive is positioned to advance outcomes for people and planet by scaling uptake of quality human rights and environmental due diligence and enhancing corporate accountability for due diligence failures.

What’s next for companies and member states covered by the CS3D?

Now that the Directive has become law, EU Member States have two years to transpose it into their national laws, after which enforcement will commence. Currently, the directive is expected to cover more than 5500 companies. For more information, check out Shift’s responses to Frequently Asked Questions about the CS3D.

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April 2024

Frequently Asked Questions about the EU Corporate Sustainability Due Diligence Directive

In this resource, Rachel Davis (Co-Founder), and Ruben Zandvliet (Deputy Director for Standards), answer companies’ frequently asked questions about the new Corporate Sustainability Due Diligence Directive. Since the approval of the Corporate Sustainability Due Diligence Directive (CS3D) by senior officials from EU Member States in Council on 15 March, we’ve received numerous questions from companies […]

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