The Corporate Sustainability Due Diligence Directive (the proposal) requires large companies to identify and address their negative human rights and environmental impacts in line with key international frameworks including the UN Guiding Principles
on Business and Human Rights1 (UNGPs) and OECD Guidelines for Multinational Enterprises2 (OECD Guidelines) and associated due diligence guidance. It is welcome that the proposal has drawn heavily from these frameworks in its design. The proposal contains a number of ambitious aspects, as it covers impacts across the full value chain, includes provisions on enforcement and civil liability and has the potential to have a significant positive impact for people and planet. However, the restricted number of companies in scope and provisions limiting the extent of the due diligence obligation including by suggesting reliance on contractual means to exercise this due diligence and other deviations from the international frameworks mentioned above risk undermining its effectiveness as well as the legal certainty it sets out to create.