DEEP DIVE: EU Supply Chain Law Hits Legislative Snag

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A European Union (EU) proposal to require companies to vet against potential human and labor rights violations in their supply chains hit a roadblock after a 9 February 2024 vote was delayed following objections raised by member countries Germany and Italy.

The legislation, the Corporate Sustainability Due Diligence Directive (CSDDD), proposed on 23 February 2022 by the European Commission (EC), also would require certain large companies (EU companies with at least 500 employees and a global total revenue of $161 million and non-EU companies with larger revenues) to align their business strategies with the objectives of the Paris Agreement, which seeks to limit global warming to 1.5°C. It also contains provisions obligating company leaders to consider environmental consequences in their decision-making.