American business groups are pushing hard to water down a major European law that forces companies to address human rights violations and environmental damage in their operations, according to a press release from Human Rights Watch. The American Chamber of Commerce to the EU has joined European companies in lobbying against the Corporate Sustainability Due Diligence Directive, which passed in 2024. The law requires large companies operating in Europe to identify and fix human rights and environmental problems throughout their supply chains. Now the European Parliament faces intense pressure to gut key parts of the legislation that would make it easier for abuse victims to take companies to court.
The Corporate Sustainability Due Diligence Directive was designed to hold corporations accountable for harm they cause around the world. It covers both human rights violations and environmental damage, giving victims new legal tools to seek justice. The law also includes climate provisions that require companies to create and implement plans to cut emissions in line with keeping global warming below 1.5 degrees Celsius.
Oil and gas companies have targeted the climate rules most aggressively. ExxonMobil CEO Darren Woods even asked President Trump to make the law part of trade talks with the EU during a June 27 meeting. The company has met with top European Commission officials at least five times this year to discuss the legislation. EU member states are now proposing to weaken the climate requirements, suggesting companies should only make “reasonable efforts” instead of actually implementing concrete plans to fight global warming.
The European Parliament now decides whether to stand firm or cave to industry pressure. Human Rights Watch argues that lawmakers should strengthen rather than weaken the law, especially given that fossil fuel production drives two-thirds of global greenhouse gas emissions and causes serious human rights abuses through toxic air, unsafe water, and polluted ecosystems.
