RISK MITIGATION
“Large companies must take their responsibilities in the transition towards a greener economy and more social justice ”
PIERRE-YVES DERMAGNE , BELGIAN DEPUTY PRIME MINISTER AND MINISTER OF THE ECONOMY AND EMPLOYMENT
Penalties for non-compliance The CSDDD establishes mandatory penalties for violations , with fines reaching up to 5 % of a company ’ s global net turnover .
Pierre-Yves Dermagne , Belgian Deputy Prime Minister and Minister of the Economy and Employment , previously remarked : “ Large companies must take their responsibilities in the transition towards a greener economy and more social justice . The CSDDD will allow us to sanction those actors that violate their obligations . It is a concrete and significant step towards a better place to live for everyone .”
While the directive ’ s passage was a significant achievement , it faced criticism for scaling back its scope compared to earlier drafts .
Pietro Cesaro , Policy Advisor for EU Sustainable Finance at E3G , is among those to have highlighted the challenges : “ One of the trickiest challenges in the next EU steps is ensuring a harmonised approach in business practices . Due to political manoeuvring , we have risked losing this within the due diligence realm .
“ Thanks to the Belgian presidency , we can now welcome this significant agreement , which , however , covers fewer companies , potentially jeopardising the competitiveness of those outside the scope .”
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