Envoys Seek To Pass Supply Chain Rules After Significant Watering-Down

The Coreper II group of member state permanent representatives to the EU are expected to vote at around 1215CET (0715ET, 1115GMT) on a compromise text for the Corporate Sustainability Due Diligence and amending Directive (CSDDD). The CSDDD is intended to make EU companies liable for any human rights abuses or environmental damage in their supply chains, even if outside the Union.

• The previous version was blocked in late Feb, with Germany and Italy scuppering the deal due to concerns about impacts on domestic industry.
• A compromise text has seen a 67% reduction in the number of EU firms that will be subject to the supply chain due diligence rules according to Euractiv.
• The threshold increases means only firms with 1,000 employees will be subject to the rules (from 500 previously), with a turnover threshold of EUR450mn (from EUR150mn previously).
• Despite the dilution of the CSDDD, Euronews highlights the continued potential for the deal to be voted down, reporting, "Prospects of a deal have also been further thrown into doubt by a parallel trade-law fracas over new plans on packaging waste, which is also scheduled for a vote earlier on Friday. Italy – which has expressed scepticism on both pieces of legislation – may attempt to link the two politically."