European Parliament vote on Corporate Sustainability Due Diligence undermines supply chains and competitiveness

Commenting on today’s European Parliament plenary vote on Corporate Sustainability Due Diligence (CS3D), Eurochambres President Vladimír Dlouhý said: “The implications of this Directive are concerning for European businesses. It will not only affect the functioning of supply chains, but also hurt our global competitiveness”.

The CS3D adopts a risk-based approach, but diverging provisions among member states threaten Europe's level playing field. Eurochambres is deeply concerned about rising compliance costs for companies and challenges accessing vital materials crucial for Europe's twin transition.

Once companies start implementing their due diligence plans, the challenges will become more apparent. Additional guidelines, industry schemes, and secondary legislation are essential to provide clarity for all economic operators affected by this legal framework.

President Dlouhý added: “Nobody disputes the aims of this directive, but MEPs have failed to take into account the day-to-day reality and complexity of internationally active businesses. The EU should be helping create the right conditions and incentives to build more resilience in value chains, not weaken them”.