The EU’s Draft Corporate Sustainability Due Diligence Directive: A First Assessment

In February this year, the European Commission finally released its proposal for an EU-wide Directive on Corporate Sustainability Due Diligence (‘the draft directive’).1 The draft directive, which follows the 2017 French devoir du vigilance (Duty of Vigilance) and the 2021 German Lieferkettengesetz (Supply Chain Law) as well as a 2020 European Parliament draft law on the same topic,2 is in various respects the most ambitious of its kind.3 Nonetheless, the move to legalize the concept of human rights and environmental due diligence as derived from the international standards has once again tempted European policy-makers (often in the name of ‘legal certainty’) to amend and limit aspects of the internationally agreed and -established concept, with the ultimate effect of reducing decade-long established responsibilities for companies.