BRUSSELS, BELGIUM — COCERAL, FEFAC and FEDIOL, representing the grain and oilseed trade, feed industry and oilseed crushing industry, released a statement on April 26 endorsing the recent adoption of the Corporate Sustainability Due Diligence Directive (CSDDD) by the European Union. The law is now subject to final approval by Member States, after which it will be transposed into national law.

The CSDDD establishes legal liability for corporations on environmental and human rights issues in the European courts. It includes new rules on supply chain due diligence, one of a set of laws passed including action on toxic air, packaging and packaging waste.

The agreed upon legislation is vastly different from the original proposal, as the number of companies that the law will impact was cut from 16,300 to 5,400. The law, which will affect all public and private companies with more than 1,000 employees and annual turnover of €450 million, will be phased in over five years.

“The compromise text is much closer to the international frameworks on due diligence, such as the OECD and UN guidelines, which will allow companies to prioritize addressing adverse impacts where the risks are most likely and severe and therefore require urgent attention,” COCERAL, FEFAC and FEDIOL said. “This targeted approach will help deliver the most impact.”

The organizations urged the European Commission to provide practical and easy-to-understand guidance and best practices well ahead of the date of application, namely on how to conduct due diligence, including on the prioritization of impacts, appropriate measures to adapt purchasing practices, appropriate measures for remediation and how to identify and engage with stakeholders.

“Given the specificities of bulk agricultural supply chains, we also urge the Commission to issue agriculture-specific guidance,” they said. “Member States should ensure there is no duplication of obligations with other EU legislation covering due diligence obligations or complementing the CSDDD, such as the Forced Labor Regulation, to prevent unnecessary burden and resulting loss of EU competitiveness.

“Appropriate due diligence measures under the CSDDD should also be considered as such in the Forced Labor Regulation, while guidelines issued under both legislations should not contradict each other. Our companies look forward to constructive cooperation with the Commission, Member State supervisory authorities, other companies, as well as other stakeholders to ensure that risks in our supply chains are duly identified and properly addressed and to promote an increasingly sustainable EU economy over time.”