European trade groups propose amendments to CS3D

24 January 2023

Elizabeth Pfeuti

EU regulation

European trade groups propose amendments to CS3D 

January 24, 2023

Several major European trade bodies have joined forces to urge the European Parliament and Council to amend the due diligence framework.  

Twenty-seven European trade organisations have proposed recommendations to enhance the benefits of the corporate sustainability due diligence proposal (CS3D). 

CS3D aims to promote sustainable and responsible corporate behaviour across value chains and establish corporate due diligence duty.  

The framework will introduce a common set of binding legal requirements on human rights and environmental protection.  

However, the group of trade groups have presented recommendations and concerns which should be considered in the following steps of the legislative process. 

The joint business statement said: “The European business community supports an EU due diligence framework. However, it calls for realism, proportionality, and workability for this framework to truly enable and guide businesses in taking necessary steps towards more sustainable supply chains.” 

This has been signed by groups such as EuroCommerce, BusinessEurope, EuroChambres and ECODA. 

These have urged the European Parliament and Council to prioritise full harmonisation as the most important element of the proposal. 

Full harmonisation would avoid fragmentation of the EU single market and ensure a level playing field, according to the joint business statement.  

The business groups also argued that the current framework’s focus on all aspects within the whole value chain is “neither manageable nor realistic.” 

As a result, companies should be able to prioritise the most salient risks because otherwise they cannot implement due diligence requirements efficiently.  

Companies should also be provided freedom to take appropriate actions to cease, prevent, or mitigate identified adverse impacts in accordance with a risk-based approach. 

These groups have also claimed that regulating directors’ duties will have negative side-effects, such as interfering with national company law systems and creating legal uncertainty.  

The letter stated: “Regulating directors’ duties is unnecessary to reach the objectives of the proposal and does not belong in a due diligence framework.” 

Latest News

SHareholder meeting

NA100 benchmark shows nature commitments progress as investors strengthen engagement efforts

SHareholder meeting

ESMA's Transition and Impact Claims Guidance: Lessons for SFDR II

SHareholder meeting

Tesla’s 2026 AGM sees no shareholder proposals for first time in over a decade

SHareholder meeting

Procter & Gamble shareholder rights proposals draw significant support

SHareholder meeting

Norway’s GPFG could ease nuclear weapons exclusions for allied defence companies

SHareholder meeting

IFRS Foundation reform: Can smaller IASB and ISSB boards preserve representation?

Featured Briefings

Minerva Briefing

US SEC Rule 14a-8 Rescission Proposal

Minerva Briefing

2026 Global Proxy Season Review

Minerva Briefing

Global IPOs: Growth, governance and risk

Minerva is a global provider of sustainable stewardship solutions with over 30 years of expertise. Minerva empowers investors by providing essential tools, including ESG research and data and expert insights, enabling them to navigate the intricate and ever-evolving landscape of stewardship and proxy voting, whilst ensuring their decisions are well-informed and aligned with sustainable principles.

Related Stories

ESMA's Transition and Impact Claims Guidance

ESMA's Transition and Impact Claims Guidance: Lessons for SFDR II

October 23, 2026
Read More
ESMA ratchets up greenwashing scrutiny

ESMA ratchets up greenwashing scrutiny – stewardship claims now in scope

October 14, 2026
Read More
US State officials raise stewardship concerns over Rule 14a-8 rescission

US State officials raise stewardship concerns over Rule 14a-8 rescission

October 8, 2026
Read More

FCA opts for comply-or-explain climate disclosures in retreat from mandatory reporting

October 2, 2026
Read More

Sustainability reporting requirements boost climate-related financial disclosures, ASIC says

September 23, 2026
Read More
ASX Corporate Governance Principles and Recommendations

ASX governance reform: simplification must preserve decision-useful disclosure

September 16, 2026
Read More