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April 2023: Support for alignment of the CSDDD with the international standards on sustainability due diligence

In April 2023, businesses and investors came together again to voice their Support for alignment of the CSDDD with the international standards on sustainability due diligence. The Investor Alliance partnered with its European allies and members to back the statement, which urged the EU Council, Parliament, and Commission to adopt proposals for an ambitious CSDDD which holds up the UN Guiding Principles and the OECD Guidelines for Multinational Enterprises. Coordinated by the Business and Human Rights Resource Center, more than 40 businesses and networks backed the statement. 

The statement called for the greatest possible alignment between international standards for businesses and investors and the CSDDD including: 

  • Risk-based due diligence requirements that apply to the entire spectrum of risks and impacts across the full value chains of companies in all sectors, including financial institutions, in line with the international standards;
  • Encouragements for creative initiatives and collaborative leverage involving affected stakeholders and governance structures;
  • Due diligence duty (in particular articles 7 and 8 of the Directive) that incentivizes companies and their directors to look at the company's own activities that can heighten or reduce risks to people, the environment and climate across value chains; 
  • Promotion of meaningful and safe engagement with affected stakeholders to promote effective and credible sustainable due diligence practices; 
  • Meaningful enforcement of due diligence requirements on companies, ensuring its practices are of high quality and that those who are harmed have access to remedy.

The CSDDD remains in the current "Trilogue" phase of negotiations between the EU Council, Parliament, and Commission.