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By January 2023, the legislative journey of the Corporate Sustainability Due Diligence Directive (CSDDD) had already covered significant ground. Initiated by the European Commission in February 2022, the directive aims to establish due diligence obligations for businesses, ensuring they identify, prevent, end, and remediate harmful impacts on human rights and the environment. However, the path to consensus has been anything but smooth.
The Council’s “General Approach” in December 2022, representing the collective stance of the 27 EU governments, notably diluted the original proposal. This version limited the directive’s reach along the value chain and excluded financial services from the scope of due diligence, falling short of the standards set by the UNGPs and OECD Guidelines.
Negotiations within the European Parliament were marked by intense debates and controversies, especially around the exclusion of financial services and the inclusion of climate transition obligations. Despite these challenges, the Parliament’s position, adopted on June 1, 2023, introduced significant improvements: closer alignment with international standards and inclusion of access to justice measures. Nevertheless, critical issues like the reversal of the burden of proof and comprehensive climate obligations remained inadequately addressed.
Following the Parliament’s position, the trilogue process commenced, aiming to reconcile the positions of the European Commission, Parliament, and Council. A political agreement was finally reached on December 14, marking a pivotal moment for global corporate accountability. Despite leaving significant gaps, such as the exclusion of financial services from due diligence requirements, this deal underscored the necessity for enforceable obligations for businesses to respect human rights and the environment.
Throughout this legislative journey, the European Coalition for Corporate Justice (ECCJ) and its members have played a crucial role. Our advocacy efforts, with many civil society actors, have been instrumental in shaping key aspects of the directive. ECCJ’s initiatives, including co-authoring influential publications and organizing impactful conferences, have highlighted critical issues and mobilized widespread support for robust corporate accountability standards.
Below an excerpt of ECCJ’s work from our 2023 Annual Report:
- ECCJ drafted, co-authored, and signed 13 public documents, including policy briefings, open letters, and joint statements, with the support of hundreds of NGOs worldwide.
- With a pan-European membership of over 480 organizations, ECCJ assumed a key coordinating role, consolidating the advocacy goals of both EU and national civil society. This involved chairing regular meetings and leading outreach to policymakers.
- We organized several advocacy events focusing on critical issues such as access to justice for victims of corporate malpractice, women’s rights and access to justice in global value chains, and environmental and climate impacts.
- To emphasize the need for strong access to justice provisions for victims, three human rights activists (Danilo Chammas, Maxwell Atuhura, Nicholas Omonuk Okoit) joined us on an advocacy tour across three EU countries, sharing their struggles in seeking justice after corporate abuses.
- ECCJ members, together with the JIEB campaign, hosted a 10-meter-high statue of Lady Justice in 8 EU cities, reminding European citizens and decision-makers of the severe consequences of corporate malpractice.
- ECCJ partnered with a global coalition to launch the BHR in Law website, which tracks legislative and judicial developments in corporate accountability worldwide.
- Our visibility continued to grow, with over 300 mentions in the media, a 15% increase in Twitter followers, a 37% increase in LinkedIn followers, and over 40,000 visits to our new website.
In our annual report, you can find a summary of our coalition’s top achievements, as well as our activities, resources, impact, and financial and governance information.