Key Lawmaker Vote on Corporate Sustainability Rules

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Key Lawmaker Vote

Key Lawmaker Vote

Hopes are high for new EU corporate sustainability rules to apply as of 2027 after a key lawmaker vote today (24 April). Members of European Parliament (MEPs) in Strasbourg voted 374 to 235 in favour of the Corporate Sustainability Due Diligence Directive (CSDDD), which requires big companies to check supply chains for pollution or poor labor practices.

Upcoming Implementation

The legislation has previously faced significant holdups from national governments wary of red tape. Lead lawmaker Lara Wolters (Netherlands/Socialists and Democrats) expressed confidence in the current progress, stating that opponents had been guilty of “political posturing”. The final approval by industry ministers is scheduled for 24 May.

Ministers expressing doubts over the law “have had their time and now we are moving on to the actual adoption,” she said. With the CSDDD deal already politically agreed back in December, the vote makes the law all but certain to take effect.

Companies found in breach could face a fine of 5% of worldwide turnover. Despite the impact on business, the vote was hailed as a “historic day” by activists.

“This is a crucial step towards holding companies accountable for their negative impacts on people and the planet,” Isabella Ritter, senior EU policy officer at ShareAction said in a statement.

Under the final deal, the new plans will phase in to apply to companies with staff of 5000 or more after three years, and two years later for smaller companies.

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