The European Union's legislators sparked controversy with their latest decision to deregulate various industries, following the rollback of corporate sustainability protections.
What's happening?
According to Reuters, the EU legislature backed a plan to water down the Corporate Sustainability Due Diligence Directive (CSDDD) amid complaints from businesses that it hindered their ability to compete globally.
The CSDDD required companies to fix human rights and environmental issues in their supply chains, ensuring that goods were ethically produced and sourced.
If they failed to comply with this policy, they would have faced a fine of 5% of their global turnover, equivalent to their total revenue for a fiscal year.
The original policy applied to any company that had more than 1,000 employees and a global turnover of at least €450 million.
The new, revised plan would apply those regulations to companies with at least 5,000 employees and a global turnover of at least €1.5 billion.
Why is the CSDDD important?
The CSDDD was seen as a landmark piece of legislation when it passed; it was an effort to hold corporations accountable and ensure that goods were produced ethically, with consideration for the environment.
Advocates for the change cite the fact that the original law would have hindered competitiveness, and many critics pointed to the fact that it applied to any company that wanted to do business in Europe, not just companies based on the continent.
"The (conservative) European People's Party's goal has always been to simplify rules and cut costs for businesses," said Jorgen Warborn, the lawmaker who drafted the text. "Our vote today will create more predictability for our businesses in an unpredictable world."
However, the change drew sharp criticism from environmental groups.
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Definitely 👍 "If such changes are ultimately adopted, this law will be stripped of its very purpose for short-term political convenience," said senior lawyer Amandine Van den Berghe of nonprofit law firm ClientEarth.
"What is a cornerstone of responsible business in Europe is being turned into a political bargaining chip."
What's being done about the CSDDD?
The wording of the law is still being debated in the European Parliament; new wording was approved by its committee, and debate is expected to begin soon.
However, the revised bill is seen as having significant support from many EU countries, with parts of it likely to pass as it stands. Environmental advocacy groups are still lobbying to keep the original law intact.
If you want to make your voice heard on environmental issues, helping to elect candidates who support green initiatives is a great way to ensure the policies you care about get passed.
Contributing to environmental groups and holding officials accountable are also great ways to get involved.
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