EU Vote on Corporate Sustainability Law Postponed Amid Opposition

The European Union's decision on the Corporate Sustainability Due Diligence Directive has been delayed due to concerns over civil liability and bureaucracy, with Germany playing a key role in the opposition.

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.