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Supply chain law: EU leaders must uphold due diligence directive to avoid workers’ abuse, provide legal certainty to companies already investing in corporate responsibility, rights group says

French President Emmanuel Macron’s recent call to scrap the CSDDD risks exposing people and businesses to modern slavery abuses.

[The CSDDD - Corporate Sustainability Due Diligence Directive - was introduced in 2024 (2024/1760) and is a directive in EU law to require due diligence for companies to prevent adverse human rights and environmental impacts in the company’s own operations and across their value chains. It was adopted in 2024.]

This follows years of negotiations and a hard-won political agreement between EU member states.

The directive was designed to provide consistent, harmonised laws on human rights and environmental due diligence across the EU.

It reduces legal uncertainty, ensuring companies are not left to navigate a patchwork of national regulations.

Without the CSDDD, businesses face a confusing policy environment and intensifying pressure from investors, consumers, and civil society, says human rights NGO Walkfree.

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The CSDDD is a proactive framework that helps businesses identify and address human rights and environmental risks before harm occurs.

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As the United Nations has warned, failing to act early worsens the risk over time. This increases reputational, legal, and financial risk.

A reactive approach means companies only respond once damage has already been done. This exposes them to lawsuits, public backlash, and regulatory penalties.

By embedding due diligence into core business operations, the CSDDD helps companies to:

• protect workers, communities and the environment, • future-proof their supply chains, • build stakeholder trust, • and meet growing expectations for responsible corporate conduct.

This is not only an ethical obligation but is also a competitive advantage.

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Clear and consistent EU-wide laws will reward businesses already investing in ethical practices while holding those who don’t comply to account.

This levels the playing field and gives companies legal certainty to plan for the long term.

With global scrutiny on human rights and environmental abuses in supply chains increasing, the CSDDD provides a much-needed roadmap for stronger corporate governance and sustainable growth.

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Delaying or weakening the CSDDD would be a setback not only for human rights but for the EU’s credibility as a global leader in sustainability and corporate responsibility.

Walk Free calls on all EU member states to honour their commitment to this directive and vote to uphold the CSDDD.

It’s time to show that strengthening human rights is not a barrier to business – it’s a foundation for long-term success.