EU Corporate Sustainability Due Diligence Proposal

On 23 February 2022, the Commission adopted a proposal for a Directive on corporate sustainability due diligence. The aim of this Directive is to foster sustainable and responsible corporate behaviour and to anchor human rights and environmental considerations in companies' operations and corporate governance.

Bitkom welcomes the European Commission's objective to strengthen human rights through corporate sustainability due diligence and thus contribute to the global economy's resilience and long-term prospects. Nevertheless, recognising the complexities and limits of statutory measures as well as the capacity for companies to exert influence, is crucial.

To strengthen the objective of the Directive and simultaneously ensure its feasibility in practice, we propose some adjustments. Our key points:

• Obligations & Liability: Clearly define obligations and adopt a risk-based approach.
• Scope: Expand scope and integrate small and medium-sized enterprises.
• Civil Liability: Art. 22 of the CSDD proposal would cause unproportionate and uninfluenceable civil liability risks for companies.
• Implementation: Use digital tools to comply with obligations.