ESG Post

Corporate Governance

New guide to influence CSDDD transposition for human rights alignment

The Danish Institute for Human Rights has published a new guide offering practical advice on how to engage with policymakers during the transposition of the Corporate Sustainability Due Diligence Directive (CSDDD) to advocate for alignment with the UN Guiding Principles on Business and Human Rights and other international business and human rights standards.

The CSDDD, which took effect on 24 July 2024, initiates a two-year period for the EU Member States to incorporate its requirements into their national legislation. This directive mandates that large companies conduct risk-based due diligence to identify, assess, address, and remedy potential and actual human rights and environmental impacts related to their operations.

The final CSDDD text emerged from a complex and politicised negotiation process, leaving some ambiguities and gaps that may be addressed through national laws and supplementary measures such as guidance.

National human rights institutions (NHRIs), with their expertise in human rights, are well-positioned to influence the transposition process. The guide highlights key areas where NHRIs can engage with policymakers.

Clarifying core due diligence concepts to ensure they are accurately reflected in national laws and aligned with the UN Guiding Principles and OECD Guidelines, addressing ambiguities in the directive’s language, including material scope, civil liability, and downstream impacts, promoting comprehensive and ambitious transposition laws, such as expanding personal and material scopes and contributing to the design of supervisory authorities and implementation guidance, are some of the focus areas.