Businesses urge EU to stay the course on CSDDD

A group of 11 major EU businesses including Nestlé, Primark, Mars and Unilever are urging EU leaders to focus on the implementation of sustainability regulations like CSDDD instead of reopening negotiations.

In an open letter to EU Commission President Ursula von der Leyen and other government leaders, DP World, Ferrero, Groupe l’Occitane, Mars, Nestlé, Primark, Signify, Unilever, NEI Investments, the Ethical Trading Initiative and the Global Network Initiative argue that Europe’s sustainability regulations “have the potential to drive long-term resilience and value for European businesses in support of competitive advantage”.

Published just a few days before EU representatives are due to start discussing an ‘omnibus’ initiative to simplify Europe’s sustainability compliance, the letter expresses concern about what these new negotiations could mean for already approved regulations, including the Corporate Sustainability Due Diligence Directive (CSDDD).

“We are concerned about the potential for others to use this process to call for the legislation to be reopened for political renegotiation. Parts of the legislation are already in force, and companies have already invested significant resources in preparing for and meeting the new requirements. Predictability is critical to the ability of all actors, including businesses, to make informed decisions”, the letter says.

CSDDD background

CSDDD was approved by the European Parliament last April, introducing a legal obligation for companies to conduct environmental and human rights due diligence across their supply chains.

But negotiations around this law were particularly heated, with conservative factions arguing that it would place too heavy a regulatory burden on corporate Europe. As a result, the scope of the law was largely reduced to cover only the largest corporations in the EU – around 5,000 companies.

Still, opposition to the law has continued even after its approval, leading the new, right-leaning European leadership that took office after last year’s election to promise the ‘Omnibus’ directive. The first meeting on this initiative is taking place this week, with an announcement expected in February.

Corporate support for EU sustainability regulation

This is not the first time the corporate world has spoken in favour of EU sustainability regulations – and asked for an end to the political back-and-forth.

Early last year in the middle of CSDDD disputes, Bayer, Aldi, Epson and Mars joined a group of business networks to write an open letter urging the German government to support the CSDDD, which they called “appropriate and feasible”.

Sustainable business group Businesses for a Better Tomorrow also positioned itself in favour of the law at the time, describing it as “a historic opportunity (...) to end the competitive advantages of companies that act to the detriment of human rights and the environment”.

And in October, several forest-dependent companies asked the EU not to delay its Deforestation Regulation, arguing that postponing implementation would result in financial losses on the investments made to comply. The Parliament still postponed implementation by one year, meaning compliance is now expected by December 31, 2025.