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The corporate sustainability due diligence directive (‘CSDDD’ or ‘CS3D’) is a European Union proposal requiring companies and co-operatives of certain scale to monitor their operations, and chain of activities, so as to identify and mitigate adverse human rights and environmental impacts. 

James Doyle

In recent days the Belgian presidency hammered out a compromise designed to address member state concerns around excessive regulatory burden on companies and other undertakings such as co-operative businesses. 

This follows several weeks of uncertainty during which it appeared the proposed legislation might not be adopted.

The compromise would see businesses with more than 1,000 employees and with a worldwide turnover of more than EUR 450 million falling with the remit of the directive. This represents a tripling of the previous turnover threshold requirement – a significant change which will remove many co-operatives from the direct scope of the directive.

Yesterday that compromise text moved one step closer to the finishing line with the approval of the Legal Affairs Committee of the European Parliament. The final step will be for the Parliament itself to approve the text before it can be adopted as a directive in time for the June elections.

In relation to the due diligence directive ICOS has worked with its partners in COPA COGECA to address the regulatory burden. Other points of interest have included: the harmonisation of the directive’s due diligence requirements with those in various member states; the removal of directors’ duties from the remit of the directive; and clarity on the chain of activities that a business would have to concern itself with when monitoring, identifying and mitigating risks. 

ICOS is committed to securing sustainability regulation that recognises the social and economic contribution of Irish food producer owned co-operatives and makes compliance both meaningful and achievable. 

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