The Corporate Sustainability Due Diligence Directive (CSDDD) is currently being negotiated in trilogue between the EU-Commission, the Council and the European Parliament. Companies will be obliged to identify, eliminate, prevent, mitigate and account for adverse human rights and environmental impacts of their business activities in their global value chains. While positive effects on workers and communities, especially in the Global South, are widely undisputed, the expected economic effects of the Directive have been discussed controversially. 

In a recent study commissioned by AK, Prof. Johannes Jaeger (University of Applied Sciences BFI Vienna), Ass. Prof. Gonzalo Duran (Fundacion Sol, Santiago de Chile) and Lukas Schmidt (Fian Austria) conclude that the CSDDD is a "win-win" legislation for Europe and the Global South. It is expected to have a significant positive impact on economic welfare in the Global South and a net positive impact on the European economy. This new AK EUROPA policy brief provides an overview of the main findings of the study.

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Sarah Bruckner

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Alice Wagner (Brussels office)

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