Mandatory corporate sustainability due diligence in global value chains: The long-awaited European solution compared to existing international standards

The European Commission published the long-awaited proposal for a directive on Corporate Sustainability Due Diligence (CSDDD) on 23 February 2022. The CSDDD not only contains important mandatory due diligence obligations for companies to prevent and address adverse impacts, but also seeks to break the current fragmentation of national requirements and company practices to create a level playing field for companies within and outside the Union. While the proposed legislative efforts definitely are to be welcomed, the current due diligence approach of the CSDDD is unlikely to reach its full potential, leaving some severe adverse impacts unidentifiable. This contribution outlines three possible points for improvement that mainly stem from deviations from the widely-recognised international due diligence framework including the UNGPs and OECD Guidelines.