New EU Corporate Sustainability Rules Approved, Hailed by Activists But Draw Concerns Over Red Tape

The European Parliament has voted in favor of the Corporate Sustainability Due Diligence Directive (CSDDD), requiring large companies to monitor their supply chains for environmental and labor violations. While environmental and social activists welcome the move, concerns remain over the potential for increased bureaucracy. The law is expected to take effect in 2027, but member states have the power to alter its provisions or even block its implementation.

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