The European Union (EU) faces mounting criticism over a proposal that critics argue dilutes a recently enacted directive designed to protect human rights and the environment within corporate supply chains. This comes as the EU is positioning itself to ease sustainability requirements, which some claim could weaken the EU directive originally aimed at fortifying these protections.
The Corporate Sustainability Due Diligence Directive (CSDDD), which took effect in 2024 as part of the broader European Green Deal, mandates businesses to carry out environmental and human rights due diligence throughout their supply chains. However, the European Commission’s Omnibus I package proposes to roll back several key obligations, focusing due diligence primarily on direct suppliers rather than extending it to more complex, high-risk areas.
This legislative shift has been met with concern from organizations such as Human Rights Watch (HRW), which cautions that the proposed changes would “hollow out” the protections originally set by the CSDDD. HRW has also thrown its weight behind an inquiry by the European Ombudsman into why the proposal did not undergo a public consultation or impact assessment, as required by the EU’s Better Regulation Guidelines.
Additional criticisms have been voiced by entities including the EU Agency for Fundamental Rights, and the United Nations Working Group on Business and Human Rights. International critics argue that the proposal promotes a problematic dichotomy between sustainability and economic competitiveness. An open letter from notable figures in the human rights field has described the move as a “deeply worrying backward step.”
As negotiations proceed with the EU Parliament and Presidency to finalize the proposal, HRW has urged lawmakers to uphold the directive’s original intent, emphasizing that “[b]oth victims of corporate abuse and EU consumers deserve better.” Critics remain vigilant as they push for the parliament to enforce a regulatory framework that robustly holds corporations to account.