European Union (EU) trade associations representing the grain, oilseeds, crushing and animal feed sectors have endorsed the bloc’s adoption of the Corporate Sustainability Due Diligence Directive (CSDDD).
A joint statement welcoming the directive was issued on 24 April by the EU vegetable oil and protein meal industry association (FEDIOL), EU trade association for cereals, rice, feedstuffs, oilseeds, olive oil, oils and fats (COCERAL) and EU feed manufacturers’ federation (FEFAC).
Subject to final approval by member states before becoming law, the CSDDD establishes legal liability for corporations on environmental and human rights issues in European courts. It includes new rules on supply chain due diligence, one of a set of laws passed including action on toxic air, packaging and packaging waste.
The agreed upon legislation includes changes to the original proposal, with the number of companies that the law would impact reduced from 16,300 to 5,400.
Set to affect all public and private companies with more than 1,000 employees and an annual turnover of €450M (US$482M), the new law would be phased in over five years.
“The compromise text is much closer to the international frameworks on due diligence, such as the United Nations and the Organization for Economic Cooperation and Development (OECD) guidelines, which will allow companies to prioritise addressing adverse impacts where the risks are most likely and severe and therefore require urgent attention,” COCERAL, FEFAC and FEDIOL said in the statement.
“This targeted approach will help deliver the most impact.”
As companies would need to start preparing to implement the CSDDD, the organisations urged the European Commission to provide practical and easy-to-understand guidance and best practices well ahead of the date of application, including details on how to conduct due diligence, appropriate measures to adapt purchasing practices, appropriate measures for remediation and how to identify and engage with stakeholders.
“Given the specificities of bulk agricultural supply chains, we also urge the Commission to issue agriculture-specific guidance,” the statement said.
“Member states should ensure there is no duplication of obligations with other EU legislation covering due diligence obligations or complementing the CSDDD, such as the Forced Labour Regulation, to prevent unnecessary burden and resulting loss of EU competitiveness.”
