Leading European businesses are pressing Chancellor Friedrich Merz of the CDU and Vice-Chancellor Lars Klingbeil of the SPD to establish robust, reliable and transparent standards for supply chains, arguing it’s a foundational element for the long-term competitiveness of the European economy. A letter, revealed by Tagesspiegel Background, outlines these demands and highlights concerns over potential dilution of the EU’s proposed Corporate Sustainability Due Diligence Directive (CSDDD).
The letter, signed by 21 CEOs, managing directors and senior leaders from companies including retail giant Otto, supermarket chain Aldi Süd, chocolate manufacturer Alfred Ritter, SMA Solar Technology, Vaude and GLS Bank, arrives during a period of intense debate surrounding the CSDDD. The directive, currently under revision, aims to hold companies accountable for human rights and environmental abuses within their supply chains.
The signatories explicitly advocate for “strong, reliable standards” that promote level playing fields, foster transparency and reward responsible business practices, while staunchly opposing any backsliding on human rights, environmental protection and legal certainty. They assert that improved comparability between companies will bolster confidence among consumers, investors, credit institutions and business partners. The document also emphasizes the necessity of effective sanctioning mechanisms to penalize breaches and prevent unfair competition. Specific, practical regulatory measures are proposed to achieve these aims.
Crucially, the companies publicly refute a recent push, reportedly driven by a group of 46 CEOs, calling for the immediate abolition of the CSDDD. They label such a move “counterproductive” warning it would jeopardize the integrity of the EU’s single market. This rebuke appears to be a direct response to a letter sent in October to Chancellor Merz and French President Emmanuel Macron, demanding the directive’s termination – purportedly on behalf of a collective of 46 CEOs.
However, investigations by Tagesspiegel Background reveal that several prominent financial institutions, despite their names appearing on the list of purported supporters of that initial letter, do not actually endorse its conclusions. The discrepancy underscores growing divisions within the business community regarding the directive and raises questions about the veracity of claims made by those advocating for its removal. The current pressure from the 21 signatories signals a determined effort to ensure the CSDDD remains a robust and enforceable framework for corporate accountability.