Isabella Ritter, Senior EU Policy Officer at ShareAction commented: "This is an historic day for the EU. After years of hard negotiations and compromises, the first EU-wide law on corporate accountability is set to come into force.

"While we would have preferred a more robust and far-reaching legislation, this is a crucial step towards holding companies accountable for their negative impacts on people and the planet, including child labour, forced labour, environmental degradation and pollution.

"The approval of the CSDDD, the first law of its kind in the EU, marks the beginning of a shift away from business as usual and sets a new standard for corporate responsibility in the EU and beyond. It will empower companies to gain clarity across their value chains and bolster resilience and preparedness for future challenges.

"However, this is just the beginning. Looking ahead, the completion of the EU's due diligence framework will require the adoption of accountability rules for financial institutions for their clients' activities, ensuring a more coherent and effective system."

Notes to editors:

The final agreement reached with member states increased the thresholds for the scope of application (from 500 to 1000 employees and from 150 to 450 million euros turnover) and introduced a three-stage phase-in approach, so that the Directive will not apply to all companies in scope until five years after entry into force.

The final step of the legislative process will take place at the upcoming Competitiveness Council on 23-24 May, where EU Ministers will rubber stamp the legal text. Following this, the CSDDD will enter into force 20 days after its publication in the Official Journal.