Proposed reforms to EU governance risk departing from UN standards, and could undermine the ability of some companies to spot human rights abuses in their supply chains, according to a UN high commissioner.

Volker Türk, the United Nations high commissioner for human rights, was commenting on attempts in Brussels to revise the Corporate Sustainability Due Diligence Directive (CSDDD) legislation that mandates companies to check their supply chains for abuses of the environment and human rights.

In a statement, Türk said: “It is important that a revised EU Corporate Sustainability Due Diligence Directive retains a risk-based approach to human rights due diligence and remains aligned with the UN Guiding Principles.

“Many companies subject to the EU legislation have already invested in this internationally recognised approach to risk management and consider it an efficient and effective way to address and manage human rights risks.”

Double trouble?

Türk raised concerns that if the revisions go through, companies could be subject to running two due diligence systems—one according to UN standards and the other based on EU demands—which would impose extra costs and complexity.

The CSDDD is undergoing a revision as part of the “omnibus” process that also seeks to make changes to the Corporate Sustainability Reporting Directive (CSRD).

The European Parliament recently voted on reforms that would shrink the scope of both directives, drastically reducing the number of companies that would have to comply with the legislation. Those proposals now go through to “trilogue” negotiations to finalise amendments.

There have been growing concerns that the European Parliament changes depart significantly from the standards set by the UN Guiding Principles.

Only part of the chain

In particular, the new version of CSDDD asks companies to check only their first-tier suppliers, while UN principles say checks should be throughout the value chain.

There are also concerns the reforms mean the CSDDD risk approach becomes “reactive”, instead of proactive as proposed by the UN.

The reduction in scope is also a worry. Few companies will now be caught by CSDDD changes as they would mean only those with turnover of €1.5bn and 5,000 employees will be subject to the law. The UN asks that due diligence rules be “broad based”.

Additionally, there is also controversy over measures that would allow legal recourse against companies that breach their due diligence obligations. The UN backs a process where member states ensure there is a system of legal redress for people affected by human rights and environmental abuses. Changes to the CSDDD mean no EU-wide civil liability regime.

The trilogue negations are yet conclude, so there could still be changes to the final version of both the CSDDD and CSRD. Equally, disappointment for Volker Türk remains a distinct possibility.