Joint trade association statement towards EU due diligence that works for all

The European Green Deal is now moving into the implementation and transposition phases which present significant complexity and therefore uncertainty. The Corporate Sustainability Due Diligence Directive (CS3D), undoubtedly the flagship legislation adopted under the Green Deal, is particularly ambitious in terms of its scope thereby creating challenging and impactful new obligations for businesses with global value chains and in some instances rife unintended repercussions for the real economy in the EU and in third countries.

As Mario Draghi rightly notes, Europe’s ambitious climate targets need to be matched by a coherent plan for competitiveness. Joint efforts will be required to help position Europe as more competitive and innovative on the global stage and build a prosperous economy for all European citizens, while ensuring that sustainability principles are respected.

We, the undersigned European associations representing companies and sectors impacted by the CS3D, welcome the European Commission’s intention to put administrative burden relief and simplification at the heart of its agenda. Focusing these upcoming interventions on the CS3D as a matter of priority is essential to support the competitiveness of businesses operating in the EU, in particular SMEs, which will be indirectly but considerably acted by the legislation.

Not doing so will create an uneven playing field, and potentially a race to the bottom. In addition, negative repercussions will also cascade down to value chain operators, most of which are in third countries that are already struggling to comply with the requirements of other Green Deal legislation.