EU Passes Landmark Business and Human Rights Law

The passage of the Corporate Sustainability Due Diligence Directive (CSDDD) by the ministers of the 27 EU member states signifies a monumental step in international business and human rights legislation. Amnesty International hails this move as a defining moment, setting a binding standard for responsible business conduct in the world's largest single market.

The CSDDD mandates large companies operating in the EU to assess and address human rights and environmental risks throughout their operations and supply chains, even outside Europe. Amnesty International emphasizes the significance of this legislation in protecting individuals from abuses and facilitating access to judicial redress for victims. European companies widely support the directive, recognizing the imperative of safeguarding human rights for the sustainability of their businesses. With studies indicating the financial stability of companies that prioritize human rights, the CSDDD sets a precedent for global business practices. Member states now have two years to incorporate the directive into national law, applying to EU-based companies with over 1,000 employees and non-EU companies with substantial turnover in the bloc. Partial exemptions are granted for specific industries, such as financial institutions and arms manufacturers.

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