Update On The European Supply Chain Directive

• Published date: 01 April 2024
• Law Firm: Littler Mendelson
• Author: Sabine Vianden and Lars Kussmann

On March 15, 2024, the EU member states voted in favor of the European Supply Chain Directive (Corporate Sustainability Due Diligence Directive - CSDDD) in the EU Committee of Permanent Representatives (COREPER) after a long back-and-forth. The vote, originally scheduled for February 9, 2024, had been initially canceled and postponed indefinitely. The reason for this was that numerous member states - including Germany - had already announced their abstention from the vote in advance. The final version of the directive is less burdensome for companies compared to the previous draft. While the full text of the directive has not yet been published, the key provisions are already known. This article provides an overview.

What is the European Supply Chain Directive?

Representatives of the European member states, the European Parliament, and the Commission had already agreed on key points of a European Supply Chain Directive as part of a trilogue¹ procedure on December 14, 2023. This directive is intended to obligate companies in the EU to ensure environmental, sustainability, and social standards along their value chains...