On February 23, 2022, the European Commission presented its proposal for a law on corporate sustainability obligations – the Corporate Sustainability Due Diligence Directive (CSDD). European countries agreed on an EU-wide supply chain law in December 2022 On June 1, 2023, MEPs in the EU Parliament voted by a majority in favour of tightening the original legislative proposal from the EU Commission. The EU supply chain law can enter into force as soon as the European Parliament and the Council of Ministers agree on a common position.
The new EU law aims to oblige companies to carefully manage social and environmental impacts throughout their supply chain, including their own business operations, and it goes far beyond existing legislation at national level. In many cases, national law has a focus on specific human rights violations such as in the UK where it is aimed at modern slavery.