Position Paper
03.06.2022 IOGP

IOGP position on the Corporate Sustainability Due Diligence Directive (CSDDD)

This document provides IOGP's position on the Corporate Sustainability Due Diligence Directive (CSDDD).

The paper includes IOGP's main concerns and recommendations on how to establish a corporate due diligence framework that is proportionate and provides legal certainty, while taking into account the differing circumstances in which companies operate, as well as their ability to influence such circumstances.

Context

On 23 February 2022, the Commission adopted a proposal for a Directive on corporate sustainability due diligence. The aim of this Directive is to foster sustainable and responsible corporate behavior and to anchor human rights and environmental considerations in companies’ operations and corporate governance.

Key Recommendations

  • Directors’ duties should be limited to due diligence policy and companies should have the flexibility to choose how they meet their sustainability requirements
  • Due diligence obligations should cover only direct contractual suppliers (upstream), not downstream
  • IOGP supports clear limitations regarding civil liability linked with the due diligence obligation
  • Companies in a corporate group should be allowed to meet their due diligence requirements on a consolidated basis
  • Companies should have a safe harbor for antitrust concerns and other legal obligations
  • Alignment with other EU legislation (existing or proposed) is essential to avoid duplication and inconsistency