2 Jun 2023

European Parliament's corporate due diligence position recognises the right to a living income, among other improvements

HREDD living income sign
Fairtrade stands with producers advocating for living income and living wages as a part of Human Rights and Environmental Due Diligence
FAIRTRADE Austria - Matt Banton

In a historic move on 1 June, the European Parliament voted to adopt its position on the Corporate Sustainability Due Diligence Directive (CSDDD) with 366 for, 225 against and 38 abstentions.

The Parliament introduced significant improvements on the proposal from the European Commission, particularly in requiring companies to assess the potential or actual adverse impacts that their purchasing practices and business models may have on human rights and the environment.

The Parliament also improved the Commission’s proposal by adding recognition of the right to a living income, alongside the right to a living wage, as a component of due diligence. This is an addition for which Fairtrade vigorously advocated, as central to human rights.

Meaningful engagement with stakeholders – especially rightsholders – throughout the due diligence process has also been an important point of debate, with Fairtrade encouraging significant dialogue rather than superficial consultation.

According to a joint statement released by Fairtrade, the Fair Trade Advocacy Office, Solidaridad and Rainforest Alliance, the Parliament’s position is not perfect, but still serves as a “robust mandate” to negotiate with the EU Commission and EU Council for a final legislation.

“It is now a shared responsibility of the Parliament, the Commission, and the Council to work towards a compromise that reflects high ambition in advancing the goals of the CSDDD, addressing unintended repercussions and preventing a disproportionate burden of due diligence on less powerful actors in global value chains,” concludes the statement.

Read the full statement here.