FAO – Responsible Business Conduct Quarterly, 1Q 2024

The European Union has approved the Corporate Sustainability Due Diligence Directive (CSDD) on 15 March after delays. Companies in the EU, including agrifood enterprises, will now be required to conduct social and environmental due diligence in their supply chains. The directive focuses on identifying and mitigating risks related to environmental concerns, climate change, and human rights. The threshold for companies has increased to 1,000 employees and EUR 450 million in turnover. The Directive will now be reviewed by the European Parliament before final approval. Additionally, a provisional agreement has been reached to prohibit products made with forced labour from entering the EU market, requiring companies to implement due diligence measures to address risks associated with forced labour. This reflects a trend towards integrating human rights considerations into trade policies and has significant implications for global trade dynamics and agricultural exports.