Overview

• The European Council delayed the vote on the Corporate Sustainability Due Diligence Directive, initially set for February 9, due to rising concerns over civil liability for businesses and bureaucracy.
• Germany's abstention, influenced by the Free Democrats' concerns over excessive bureaucracy, played a significant role in the postponement.
• The directive aims to establish a corporate due diligence standard on sustainability issues, applying to EU companies and non-EU companies conducting significant business in the EU.
• Fines for violating the new sustainability requirements could reach up to 5% of a company's global turnover, applying to companies with over 500 employees or a global net turnover of more than €150 million.
• The delay casts uncertainty on the directive's future, especially with the upcoming European Parliament elections in June, which could change the body's composition and support for sustainability directives.