European Parliament sends mixed signals to victims of corporate abuse
Today the European Parliament agreed on new EU legislation to hold companies accountable for the damage they cause to people and the planet: the Corporate Sustainability Due Diligence Directive (CSDDD).
Hanna Nelson, Head of Policy at Oxfam Sweden, comments on the vote:
"Today, EU lawmakers sent double signals to people affected by corporate violations of human rights and the environment. While it is good news that a majority in Parliament voted for an EU directive, the proposal is flawed, as it leaves most companies outside the law, and people exploited by companies will have to continue fighting for redress and justice."
Hanna Nelson, Head of Policy, Oxfam Sweden
"The Swedish government and Swedish companies say they want to be leaders in business, human rights and the green transition. Many Swedish companies are actively demanding legislation that allows them to operate on the same playing field as other companies in the EU - it strengthens their competitiveness and their sustainability efforts. Despite this, Swedish MEPs from the Moderates, Christian Democrats and Sweden Democrats have worked in various ways to weaken the legislation ahead of today's vote. This is regrettable, and ultimately the risk of human rights and environmental violations remains high."
Hanna Nelson, Head of Policy, Oxfam Sweden
Background
> March 2021: Oxfam welcomed the European Parliament's proposed approach to new rules on the human rights and environmental responsibilities of companies in their global supply chains.
> February 2022: The European Commission shelved its proposal. Oxfam called it far from the systemic change required.
> December 2023: EU countries agreed their position on the new EU legislation. They watered down the already weakened Commission proposal.
> Now that MEPs have agreed on their position, negotiations between the European Parliament, EU countries and the European Commission will begin to finalize the legislation.
Oxfam wants to see legislation that:
> Holds all companies accountable for their impacts on people and the climate, taking into account company size as well as the risks associated with their activities.
>Applies throughout companies' value chains, meaning it should apply to everyone affected by the company's activities from production to use, including those who use their goods and services.
> Does not exempt the financial sector. Banks cannot be allowed to support investments in fossil fuels or projects that violate human rights and destroy the environment without being held accountable.
>Holds companies accountable for the damage they cause to the planet, including the consequences of their products and carbon emissions.
> Removes the barriers that currently prevent people affected by corporate human rights abuses from obtaining redress and access to justice.
> Links executive compensation levels to corporate behavior on human rights, environment and climate.
> Holds companies accountable if they fail to ensure that people working in their value chains earn a living wage.