Europe’s landmark Corporate Sustainability Due Diligence Directive (CSDDD)—hailed as a breakthrough for ESG accountability—is now under threat as policymakers face intense lobbying from business groups. Dubbed the “anti-look-away” law, the CSDDD was designed to enforce corporate responsibility across global value chains, requiring companies to track and address social and environmental impacts far beyond their direct suppliers. 

Approved in April 2024, the law was expected to begin applying to large firms in 2027. However, the European Commission’s Omnibus proposal—spurred by industry concerns over competitiveness—has significantly diluted key provisions. Critics, including ESG advocate and portfolio manager Rosl Veltmeijer of Triodos Investment Management, warn that these changes severely undermine the directive’s impact and Europe’s credibility on sustainability. 

Among the most concerning rollbacks is the limitation of due diligence only to direct suppliers, ignoring the more opaque tiers where most environmental violations and human rights abuses occur. Additionally, monitoring frequencies have been reduced from annually to every five years, and legal pathways for civil society organisations to support affected communities have been removed. Furthermore, companies with fewer than 1,000 employees are exempt from disclosure obligations, excluding a major portion of supply chain actors. 

This erosion of ESG due diligence is seen as a step backward in Europe’s carbon neutral strategy and global leadership on sustainability. While the directive was designed to align with broader EU goals—including the EU Taxonomy and the Green Deal—its weakening risks enabling greenwashing and reputational damage. 

At a time when global consumers demand transparency and ethical accountability, advocates argue that robust due diligence laws are essential to sustainable growth. The future of corporate responsibility in Europe now hangs in the balance, with campaigners calling for renewed support to uphold ESG principles and deliver a just, carbon-neutral economy. 

Sources: 

https://www.triodos-im.com/articles/2025/column-rosl-veltmeijer—europes-anti-look-away-law-under-siege