The European Parliament decisively rejected a move to significantly weaken the proposed EU Supply Chain Due Diligence Directive on Wednesday, highlighting a critical clash between corporate interests and human rights advocacy. The initial proposal, championed by representatives of EU member states and previously endorsed by the Parliament’s legal affairs committee, sought to drastically curtail the scope of the directive’s application.
Under the proposed amendment, only companies boasting over 5,000 employees and a turnover exceeding €1.5 billion would have been subject to the regulation. This would have reduced the potential reach of the directive by an estimated 70%, effectively shielding a vast majority of businesses from scrutiny regarding their supply chain practices. Furthermore, the compromise sought to remove obligations for companies to monitor adherence to fundamental human and labor rights and environmental standards, across their entire supply chain.
The rejection underscores growing concerns regarding the influence of powerful corporate lobbying efforts on EU legislation. Critics argue that the proposed weakening would have undermined the directive’s intended purpose: to ensure companies proactively identify and mitigate risks of human rights abuses and environmental degradation within their global supply chains. The attempt to water down the legislation has sparked outrage from human rights organizations and civil society groups, who accuse member states of prioritizing economic convenience over ethical responsibility.
The outcome sets the stage for a renewed debate and further scrutiny of the directive’s provisions. Members of the European Parliament will now vote on competing amendments on November 13th, followed by negotiations with the member states – a process fraught with potential for compromise and further adjustments. The final shape of the Supply Chain Due Diligence Directive hinges on these upcoming deliberations and will ultimately determine the extent to which the EU holds companies accountable for the impacts of their global operations.