The Window Is Closing for the EU's Corporate Sustainability Due Diligence Law

The window of opportunity for the European Union to approve a due diligence directive that would increase costs, paperwork and liability risks for large companies operating in the bloc is quickly closing, which means the plan could be severely watered down or abandoned completely. A plan to implement a Corporate Sustainability Due Diligence Directive (CSDDD, or CS3D) in the European Union is generating significant controversy, as it would require large companies in the bloc to screen their supply chains for environmental and human rights violations. EU member states were supposed to vote on the directive on Feb. 9, but the meeting was postponed after the German government announced it would abstain. Negotiators from EU member states and the European Parliament had reached a preliminary agreement on the CS3D on Dec. 14, but Berlin withdrew its support after the pro-business Free Democrats (FDP), part of Germany's coalition government, criticized the plan...