Pedro Marenja, representing 250,000 cotton farmers across Mozambique, spoke in the European Parliament in 2023 about CSDDD with a farmer perspective. Is Brussels still listening to farmers that supply Europe? © Catarina Vieira / Solidaridad
A False Dilemma and Bad Governance
The claim that human rights due diligence poses a cost burden and undermines the competitiveness of European companies is contradicted by evidence. Both a recent UNDP analysis and a World Benchmarking Alliance discussion paper argue that strong human rights performance, in fact, enhances business competitiveness, return on assets, and operational resilience—demonstrating that profitability and purpose are mutually supportive.
A false dilemma is being leveraged by politicians in Brussels to dismantle legislation adopted in spring 2024. Notably, the Christian-Democrats within the European People’s Party, who voted in favor of the regulation in 2024, are now working to cripple the very same legislation with the assistance of the extreme right in the European Parliament.
The legislative process has been politically compromised, rewarding laggards and creating regulatory uncertainty. The Ombudswoman ruled that the Commission failed to act in an accountable and transparent manner. She concluded that the Commission’s “procedural shortcomings” in preparing the law amounted to maladministration.
Major Setbacks for Fair Value Chains
The European Parliament vote formally adopts a significantly diluted version of the law, a move that undermines years of progress and delivers a framework far below international human rights and environmental standards.
The revised CSDDD has suffered significant losses, which Solidaridad and its partners believe will not contribute to the much needed change for farmers, smallholders, and producers that produce for European consumption in the rest of the world:
- Massive Reduction in Scope: The directive will now only apply to very large EU corporations with more than 5,000 employees AND a turnover of over Euro 1.5 billion. Approximately 70% of the companies that were previously in scope will no longer be covered by the CSDDD. Roughly just 1,500 companies are expected to remain under the new scope, down from 6000.
- Irresponsible Disengagement Risks: Key safeguards against irresponsible disengagement have been removed, increasing supply chain risks for small farmers and Small and Medium-sized Enterprises. They now face the prospect of being cut off from their market without any support.
- Delayed Application: The application of the revised CSDDD is delayed until mid-2029, further postponing urgent EU action against human rights violations and environmental damage in supply chains.
Reward farmers for sustainable production
As attention now turns to the final confirmation and subsequent national transposition of the Directive, Solidaridad calls on policymakers to ensure the core principles of the law are preserved and strengthened. EU rules on sustainability due diligence must maintain a robust, risk-based approach across the full supply chain, ensuring farmers are rewarded for sustainable production. National transposition must address critical shortcomings, particularly stakeholder engagement and responsible disengagement. The European Commission’s implementation guidelines, must be developed with smallholders, should support rightsholders and center collaboration and shared responsibility.