Corporate Responsibility Directive Approved by EU: A Step Towards Accountability and Sustainability

The European Union recently approved the Corporate Responsibility Directive, which requires companies to comply with the duty of care in their value chains. This directive aims to address issues such as child labor, labor exploitation, biodiversity conservation, pollution, and destruction of natural heritage. With 374 votes in favor, 235 against, and 19 abstentions, the directive was approved.

Heidi Hautala, a Green MEP who has been working on the directive for a long time, predicted that its approval would be celebrated well. She is featured in a documentary along with Lara Wolters and Manon Aubryn, which tells the story of the directive’s creation.

The duty of care applies to companies with at least one thousand employees and a turnover of at least EUR 450 million. While Finland initially objected to the clause on introducing a class action, it ultimately agreed to include it in the final version of the directive after some challenges.

Belgium played a crucial role in forming the necessary majority of member states behind the directive after numerous attempts. Originally targeting smaller companies, Belgium’s proposal removed risky sectors from the scope of the directive.

While there were obstacles and disagreements along the way, the core legislation of the Corporate Responsibility Directive has remained unchanged. The Council of Member States still needs to give its final approval before it can take effect.