Europe risks a historic setback by abandoning its Corporate Sustainability Due Diligence Directive
BRUSSELS — The Corporate Sustainability Due Diligence Directive (CS3D), a landmark European law adopted in May 2024 to hold corporations legally accountable for human rights and environmental abuses across their supply chains, is now in jeopardy — just over a year after its passage.
The directive represents a modern continuation of Europe’s long struggle for workers’ rights and corporate responsibility, echoing the early 20th-century reforms that arose in response to industrial accidents and corporate negligence. But mounting political resistance and corporate lobbying threaten to unravel this historic achievement.
A directive under siege
At its core, the CS3D requires companies to prevent and address violations such as child labor, forced labor, environmental destruction, and other abuses linked to their subsidiaries, suppliers, and subcontractors. Yet, despite its moral clarity, the legislation now faces an uphill battle in Brussels.
The immediate threat stems from the European Commission’s proposed “Omnibus I” directive, introduced in February 2025 by Commissioner Stéphane Séjourné, which aims to “simplify” EU regulations. Critics warn that this revision could effectively dismantle the CS3D — reversing years of progress on corporate accountability and sustainability.
The move follows the rightward shift in the European Parliament after the 2024 elections, which saw significant gains for conservative and far-right parties. Observers say the new majority has opened the door to heavy pressure from industrial lobbies, including major corporations such as ExxonMobil, TotalEnergies, and Siemens.
U.S. political influence and transatlantic tension
The backlash is not confined to Europe. Since March 2025, the Trump administration in the U.S. has reportedly lobbied against the CS3D, viewing it as an obstacle to American corporate interests.
In Washington, Republican Representative Bill Hagerty introduced legislation seeking to bar U.S. entities deemed vital to national interests from complying with any foreign sustainability laws — explicitly naming the EU’s CS3D.
Analysts warn that the growing transatlantic opposition underscores a broader ideological alignment between European conservatives and “Trumpist America”, favoring deregulation and the rollback of environmental and human rights protections.
A turning point for Europe
Critics say scrapping or weakening the CS3D would mark a historic regression for Europe, undermining decades of progress in corporate responsibility and global human rights governance.
“Abandoning this directive would be a grave mistake,” said one senior EU policy adviser. “It would send the message that Europe is willing to sacrifice human rights and environmental protection under pressure from political and corporate interests.”
As the debate intensifies, the future of the CS3D — and Europe’s credibility as a leader in ethical business governance — hangs in the balance.
