On 1 June 2023, the Members of the European Parliament will vote in plenary on the EP Report on the Corporate Sustainability Due Diligence Directive (CS3D).
While Ceemet, the European Tech and Industry Employer Organisation, is supportive of the objectives of the proposed Directive, we fear that the requirements following the JURI Report will have strong negative effects on the operations and supply chains of European-based companies and thereby will undermine their global competitiveness.
In order to improve the text of the JURI Committee, several MEPs have tabled amendments which could make the text more balanced, proportionate and realistic. In a letter sent on 30 May, Ceemet strongly encourages MEPs to vote in favour of the amendments proposing to delete the director’s duties, to delete Annex I, to limit due diligence to direct suppliers outside the EU, to exclude European SMEs from the definition of the value chain and to limit civil liability to cases where companies have intentionally or with gross negligence failed to comply with certain obligations.
In case these amendments are not accepted, Ceemet is of the opinion that the Directive has to be reverted back to the JURI Committee in order to allow for further discussion and make the EP Report a true balanced compromise.
The European business community largely agrees that there are several points in the text that need to be improved. Therefore, Ceemet and 35 other business organisations signed a letter asking MEPs for a number of key recommendations and concerns to be taken into account.
