On Wednesday 23rd February, the European Commission published its proposal for a Corporate Sustainability Due Diligence Directive (CSDD). This is a transformative step forward to ensure that economic activities tied to the EU single market are conducted in a responsible manner. The PRI responded to the initial public consultation from the European Commission on Sustainable Corporate Governance in February 2021.
The PRI welcomes the due diligence obligations, particularly where aligned with international standards as the UN Guiding Principles on Business and Human Rights (UNGPs) and the OECD Guidelines for Multinational Enterprises. However, to ensure a positive impact throughout the value chain, and to enable investors to better manage their own exposure to sustainability issues, some improvements will be needed.
This statement highlights six key issues with the proposal. The PRI looks forward to continuing collaboration with co-legislators and signatories to bring in the responsible investor voice and ensure an ambitious and achievable proposal aligned with EU sustainability goals.