SUPPLIER DIVERSITY
“Large companies must take their responsibilities in the transition towards a greener economy and more social justice”
PIERRE-YVES DERMAGNE, BELGIAN DEPUTY PRIME MINISTER AND MINISTER OF THE ECONOMY AND EMPLOYMENT
Penalties for non-compliance The CSDDD establishes mandatory penalties for violations, with fines reaching up to 5 % of a company’ s global net turnover.
Pierre-Yves Dermagne, Belgian Deputy Prime Minister and Minister of the Economy and Employment, previously remarked:“ Large companies must take their responsibilities in the transition towards a greener economy and more social justice. The CSDDD will allow us to sanction those actors that violate their obligations. It is a concrete and significant step towards a better place to live for everyone.”
While the directive’ s passage was a significant achievement, it faced criticism for scaling back its scope compared to earlier drafts.
Pietro Cesaro, Policy Advisor for EU Sustainable Finance at E3G, is among those to have highlighted the challenges:“ One of the trickiest challenges in the next EU steps is ensuring a harmonised approach in business practices. Due to political manoeuvring, we have risked losing this within the due diligence realm.
“ Thanks to the Belgian presidency, we can now welcome this significant agreement, which, however, covers fewer companies, potentially jeopardising the competitiveness of those outside the scope.”
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