EU Directive on Corporate Sustainability Due Diligence fails to receive a qualified majority of votes in Coreper

Today, the Committee of Permanent Representatives of the Governments of the Member States (Coreper) discussed the due diligence obligations of companies concerning corporate social responsibility, i.e. the EU Directive on Corporate Sustainability Due Diligence. Despite Finland’s constructive influence, the proposed Directive failed to receive a qualified majority of votes in Coreper.

For the time being, it is not known whether the proposed Directive will be considered further. However, Belgium has stated that it is looking for ways to continue the consideration during its Presidency before the end of June. It is possible that the consideration of the proposed Directive will take place only after the European Parliament elections in June.

The Directive would significantly increase the liabilities and obligations of large companies to mitigate any possible adverse impacts on their own operations and those of their subsidiaries and business partners. 

Finland has actively sought to influence some provisions of the Directive during the negotiations. Finland has not considered the Directive’s provisions on class action suits for damages an effective solution from the perspective of the Finnish legal system, as these provisions differ from the general provisions in force in Finland and make the system more fragmented.

Inquiries:

Jukka Sarhimaa, Special Adviser, tel. +358 295 047 330 (political questions)
Liisa Huhtala, Senior Ministerial Adviser, tel. +358 295 047 062 (content of the Directive)