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The European Parliament has backed significant reductions to the European Union’s Corporate Sustainability Due Diligence Directive (CSDDD).
The landmark law intended to hold companies accountable for human rights abuses and environmental harm in their global supply chains.
In a closely watched vote this week, centre-right and far-right groups backed changes that significantly reduce the number of businesses covered by the law and removed key climate responsibilities and the EU-wide civil liability regime.
The CSDDD adopted in 2024 requires large companies operating in the EU to assess and address risks such as forced labour, deforestation, and other forms of modern slavery across their operations and supply chains.
Under the newly supported changes, only companies with more than 5,000 employees and €1.5 billion in annual turnover would need to comply. This is considerably higher than the original threshold of 1,000 workers and €450 million in turnover.
If confirmed in the final law, these changes would remove due diligence obligations from the majority of companies previously expected to act, undermining years of progress toward more responsible supply chains.
Victims of human rights and environmental abuses will also be left to navigate a patchwork of national civil liability regimes, rather than the harmonised EU-wide approach of the CSDDD.
Global brands continue to endorse strong due diligence laws, emphasising the need for consistent expectations across supply chains.
Companies such as Ikea and Aldi have publicly backed mandatory due diligence, noting that clear and aligned rules help them identify risks such as forced labour, unsafe working conditions, and environmental damage.
These businesses also highlight that strong legislation prevents responsible companies from being undercut by those ignoring human rights standards.
Alongside this support, a lobbying effort has developed from several governments and fossil fuel companies seeking to dilute the CSDDD.
The United States and Qatar have urged the EU to scale back the directive, claiming that stricter requirements could complicate existing gas supply arrangements with Europe.
Major fossil fuel companies have similarly pushed for the policy to be weakened or withdrawn entirely, claiming the obligations would make operations more challenging within the EU.
These interventions contrast with the growing coalition of businesses and civil society groups calling for strong due diligence rules to reduce modern slavery risks and strengthen supply chain accountability.
The vote reflects the growing influence of far-right parties in the European Parliament following the 2024 elections.
These groups combined with centre-right lawmakers to form a new majority capable of reshaping legislation.
The alliance has enabled substantial amendments that roll back important elements of the directive, including higher company thresholds and the removal of climate transition planning requirements.
These changes significantly narrow the number of companies covered and reduce obligations designed to address modern slavery risks and environmental harm across global supply chains.
Negotiations between EU lawmakers are expected to be finalised in late 2025 to determine the final form of the law.
Walk Free will continue monitoring these developments and advocating for mandatory, meaningful due diligence that prioritises people’s rights over political pressure.