On the 11th anniversary of the tragic Rana Plaza industrial collapse, which claimed the lives of 1138 workers and left thousands injured, the European Parliament has made a significant stride in corporate accountability. The approval of the Corporate Sustainability Due Diligence Directive (CSDDD) signals a pivotal moment towards ensuring global value chains are free from human rights abuses, labor violations, and environmental degradation.

This landmark legislation, hailed as a historic shift, mandates stringent human rights and environmental due diligence for large companies operating within the European Union, both domestically and internationally. However, while the directive represents progress, it falls short of its initial ambition.

Critics highlight that the version endorsed by the Parliament lacks the robustness of the original agreement reached in December 2023. Key concerns include its limited coverage of EU companies, overlooking crucial aspects of the value chain, and significant gaps in protecting workers' and victims' rights.

Muriel Treibich, Corporate Accountability Coordinator at the Clean Clothes Campaign, acknowledges the directive's innovative nature but voices concerns over its limited impact. She notes that many intermediary and smaller operators may evade responsibility, undermining the directive's effectiveness.

While the directive offers avenues for enforcement and justice for victims, including a civil liability regime, it still falls short in removing obstacles for victims seeking justice in European courts. Giuseppe Cioffo, Lobby and Advocacy Coordinator at the Clean Clothes Campaign, emphasizes the need for Member States to address these issues during the directive's transposition into national law.

Despite efforts to broaden the scope of international instruments, crucial International Labour Organization conventions on occupational safety and health remain excluded. This omission poses risks to workers' safety, as demonstrated by the Rana Plaza tragedy.

Despite its imperfections, the CSDDD represents a crucial milestone in recognizing the human rights and environmental impacts of corporate activities, particularly within the garment industry. The Clean Clothes Campaign vows to continue advocating for more ambitious regulations during the directive's implementation by Member States.