Experts in international law warn that companies could face significant legal risks if the European supply chain directive is watered down, as planned. This concern is highlighted in a letter sent to European Parliament members and representatives of EU countries, as reported by “Spiegel.” The European Commission recently proposed amending Article 22 of the directive as part of its efforts to reduce bureaucracy. The proposal suggests that companies would only need to create their own climate protection plans, without the obligation to implement them. The 31 authors of the letter, including researchers from universities such as Oxford, Cambridge, Hamburg and Amsterdam, argue that such a change would not only jeopardize the goals set by the Paris climate agreement but also directly increase the legal risks for private companies. Already, legal proceedings are underway against energy companies, automakers and banks, focusing on the adherence to the Paris temperature goal of no more than 1.5 degrees. “Any further dilution of Article 22 would lead to more legal disputes” the letter states. The gap in EU law would then be filled by courts in individual EU states, causing companies to face “uncertainty, inefficiency and a fragmented legal framework.” The experts also emphasize that the directive does not dictate specific climate protection goals for companies but only requires them to implement their plans as well as possible. “This” the authors argue, “creates legal certainty.” The EU directive on the duty of care for sustainability in companies (CSDDD) came into force in July 2024 and must be incorporated into national law by EU countries within two years.
EU Lawmakers Warn of Legal Risks if Supply Chain Directive Weakened
