Layla Al-Khalifa

“EU Takes Stand Against Forced Labor in Supply Chains – A Victory for Human Rights”


EU Countries Unite for Corporate Sustainability Law

BRUSSELS — In a groundbreaking move, European Union countries have unanimously agreed to implement a law that holds companies accountable for ensuring their supply chains are free from environmental harm and forced labor.

After intense negotiations, 17 out of the 27 members stood in support of the legislation, with no opposing votes recorded.

The agreement, however, came only after significant amendments were made to the original text, sparking criticism from some quarters that the law has been watered down to the point of ineffectiveness.

The Corporate Sustainability Due Diligence Directive (CSDDD) will compel European companies to provide documentation proving that the products they import meet environmental and human rights standards, including the exclusion of child labor.

Under the new law, businesses will also be required to proactively prevent or mitigate any potential harm caused by their operations and communicate their findings to stakeholders.

Despite the positive strides, compromises were made during the negotiations, resulting in only large companies with 1,000 employees or more and a net turnover of at least €450m being subject to the law, as opposed to the original proposal of firms with 500 employees and a revenue of €150m.

The draft legislation must now pass through the European Parliament for final approval, a process that is anticipated to be smooth given the widespread support for the initiative.

Once approved, businesses will have a grace period to implement the new regulations and practices.

The journey to Friday’s approval was not without its challenges, as the EU faced setbacks in February when attempts to pass the law were thwarted twice.

Among the dissenting voices were Germany and Italy, expressing concerns that the law could disproportionately impact their numerous small and medium-sized businesses.

Markus Beyrer, director general of BusinessEurope, a lobby group, criticized the new rules for imposing stringent obligations and harsh sanctions on companies, potentially exposing them to legal battles worldwide.

While environmental and human rights advocates hailed the move as a step in the right direction, they expressed disappointment with the diluted nature of the final law.

According to the World Wide Fund for Nature (WWF), nearly 70% of European companies were exempted from the law’s obligations due to the amendments made during negotiations.

Activists like Uku Lilleväli from WWF and Marc-Olivier Herman from Oxfam criticized the concessions made to appease big business interests, arguing that the revised law undermines Europe’s commitment to democracy and human rights.

Campaign group Anti-Slavery International applauded the European Council’s decision to prioritize people and the planet over political and business interests but emphasized the need for stronger measures to combat climate change and support vulnerable communities.