Opinion: Strengthening EU’s New Business Sustainability Law to Uphold Human Rights

Amnesty International has expressed concern over the Corporate Sustainability Due Diligence Directive, a piece of legislation intended to govern the human rights and environmental obligations of businesses in the European Union (EU). In a report titled “Closing the loopholes: Recommendations for an EU corporate sustainability law which works for rights holders,” Amnesty highlighted several shortcomings in the legislation, which is set to be voted on by the European Parliament on 1 June. The report identifies serious gaps that could undermine the law‘s success in protecting people throughout Europe and beyond from corporate harms. The law is too narrow in its scope and fails to sufficiently address the impact of businesses on climate change, despite it being a fundamental human rights issue.

The Corporate Sustainability Due Diligence Directive (CSDDD) will create access to remedy for victims of corporate-related harm. However, the legislation fails to address barriers victims face when trying to access justice. The report indicates that existing barriers such as high costs and a lack of access to information mean victims will likely remain without remedy. What’s more, Amnesty International argues that the definition of the value chain that companies are required to assess as part of their human rights and environmental due diligence in the CSDDD has been limited, failing to account for the final use of their products, which is likely to result in significant human rights abuses.

Hannah Storey, Amnesty International’s Policy Advisor on Business and Human Rights, stated, “This new law could set a legal benchmark and protect people in Europe and beyond from corporate harms, closing a legislative gap which has allowed companies to perpetrate widespread rights abuses around the world and escape accountability.” She adds that Amnesty International urges EU lawmakers to strengthen the legislation proposed by the European Commission and member states. To halt corporate harm and support victims in accessing justice, lawmakers should develop strong legislation.

It is important to note that the existing barriers to justice are heightened by gender and race, which will negatively impact women and minorities seeking justice. Without addressing these barriers, the CSDDD is unlikely to achieve its intended purpose.

The Corporate Sustainability Due Diligence Directive should serve as a benchmark in the governance of human rights and environmental obligations for businesses in the EU. However, lawmakers need to address the highlighted shortcomings and strengthen the proposed legislation to protect people within the region and beyond from corporate harms. If not executed efficiently, the directive risks being undermined by exemptions and loopholes, perpetuating the current state of widespread corporate-related rights abuses worldwide.

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