EU Must Not Weaken Its Pro-Climate, Corporate Accountability Legislation at the Behest of U.S. Corporations and the Trump Administration
WASHINGTON — A year after the European Union’s Corporate Sustainability Due Diligence Directive (CS3D) came into force, aggressive corporate lobbying by the American Chamber of Commerce to the European Union, threats from the Trump administration, and concerns from Republican members of Congress led to an EU Omnibus proposal to drastically weaken and reduce the scope of the legislation.
In response, a coalition of consumer protection, climate, environmental, labor, and civil society groups today have called on EU Members of Parliament and the incoming Dutch EU Council President to oppose these anti-democratic deregulatory efforts.
“The Corporate Sustainability Due Diligence Directive is fundamental to a fair and fast energy transition,” said Chelsea Hodgkins, senior EV supply chain policy advocate with Public Citizen’s Climate Program. “As Trump’s corporate and congressional cronies axe lifesaving, popular U.S. laws and regulations, they are pressuring the EU to do the same by weakening its Corporate Sustainability Due Diligence Directive through the Omnibus. Despite widespread support for the Directive from EU citizens, businesses, lawyers, and economists alike, powerful EU leaders are kowtowing to U.S. political and corporate interests that seek to accelerate the climate crisis rather than fight for their own constituents. Corporate lobbying against the EU Corporate Sustainability Due Diligence Directive is a direct attack on a liveable future for us all.”
The Corporate Sustainability Due Diligence Directive requires large EU and non-EU companies to behave more sustainably and responsibly in their global operations. The directive specifically:
- Imposes binding global supply chain due diligence obligations on corporations.
- Ensures companies address harms identified in the due diligence process.
- Requires corporations adopt and put into effect climate change transition plans.
- Embeds rights of victims to seek legal remedy for harm caused by company activities and supports access to justice.
Despite broad support for stronger corporate sustainability regulations like the Corporate Sustainability Due Diligence Directive from European citizens, businesses, economists, and legal experts alike, Trump’s pro-billionaire, anti-democratic agenda is being taken up by the EU: the EU Council announced their support for a weakened directive that includes many of American Chamber of Commerce to the European Union’s priorities. This includes proposals to
- Remove civil liability provisions that would enable victims of corporate abuse to seek legal remedy;
- Limit the value chain scope of the due diligence requirements; and
- Slow the implementation timeline of the Corporate Sustainability Due Diligence Directive.
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