There has been a lot of talk in the European Union for some time about the introduction of the so-called CSDDD directive, renamed by the Dutch media as the 'Anti-looking away law'. This directive is aimed at strengthening the responsibility of large companies in the field of the environment and human rights. According to the new law, European companies must resolve any abuses they encounter in their production chains. However, media reports in these last days of February make it clear that ratification of the CSDDD directive is far from certain.
The European Parliament had already indicated in December that it agreed. The European Council now appears to be withdrawing support at the last minute. A situation that does not happen often. It seems as if the EU is returning to a situation in which the focus is not on social interests, but on the individual interests of the business community. While society actually demands responsibility and transparency.
This retreating movement can have several causes. The lobby from the business community, especially the manufacturing industry in Germany, France and Italy, has intensified. A good example was the broadcast of A Today from February 28 which was mainly aimed at making it clear that it is not possible for the European car industry to be competitive if they are no longer allowed to purchase parts in China, because human rights violations often occur in that country.
The upcoming European elections also play an important role in this issue. It is expected that in Europe the right-wing and right-wing radical parties, mostly Eurosceptics, will win. In anticipation of these election results, both the European Commission and the Member States are becoming very cautious: potentially sensitive measures are being reversed or not adopted to avoid playing into the hands of these Eurosceptics. This is probably also the reason why the enforcement of nitrogen legislation by the EU has been postponed; the lobby from the farmers was too overwhelming and parties do not want to lose their voice in the elections.
The argument from the business community is clear: this directive undermines their competitive position, makes products developed and produced in Europe expensive, and affects the innovative power and importance of business for Europe. It comes on top of the fact that energy in Europe is already more expensive than in the United States and China. These two countries are also more generous with government subsidies. Many companies are therefore threatening to leave Europe, because the business climate here is coming under too much pressure.
However understandable these concerns are, this argument pays little attention to the interests of the environment and human rights. And for the leading role that Europe plays or can play worldwide. Europe has set international standards in recent years, especially in aspects such as innovation, standardization, quality assurance, human rights and sustainability. Not only because governments want this, but also because European residents and action groups call for it and global developments in the field of climate have made this necessary. It is a shame to immediately hang up this pioneering role at the first minor setbacks.
Given the political situation, a postponement may be opted for, but this should not be a cancellation. Individual companies that have already opted for a CSDDD-friendly policy should, in addition to appreciation and a leading role in the social debate, also receive full support from the Dutch government. Support that could perhaps also be given shape through national policy in this area. If Europe suspends decisions on new legislation, this does not necessarily mean that we will also do the same in the Netherlands. Let's hope that the parties that will form a new cabinet also see it that way.
In 2022 we wrote an opinion article about the usefulness and impact of the CSDDD in the FD.
