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Germany may abstain from ESG regulation vote (2024)
| Environmental, social, and corporate governance |
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| • What is ESG? • Enacted ESG legislation • Arguments for and against ESG • Opposition to ESG • Federal ESG rules • ESG legislation tracker • Economy and Society: Ballotpedia's weekly ESG newsletter |
The European Union is scheduled to hold a vote on February 9 to adopt a rule that would create civil liabilities for companies that have ESG violations in their supply chains. But now Germany may abstain from the vote, possibly prompting other countries to follow suit and making adoption difficult, according to Bloomberg:
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The EU was on track to move forward with the Corporate Sustainability Due Diligence Directive after December, when lawmakers and representatives of member states ended months of negotiations with a provisional agreement. Under the directive, companies would face civil liability for failing to address environmental and human rights breaches in their value chains. It also mandates climate transition plans. … But now Europe’s largest economy is likely to abstain from the final vote among member states, currently scheduled for Feb. 9, according to a person familiar with the matter. An abstention by Germany could prompt others to follow suit, eroding support for and potentially burying the legislation, especially with time running short before EU elections scheduled for June. … The stumbling block emerged when Germany’s Free Democratic Party, part of the ruling coalition, unexpectedly announced its opposition to CSDDD in a Jan. 15 declaration, citing 'bureaucratic hurdles' and 'legal uncertainty.'[1] |
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See also
- Environmental, social, and corporate governance (ESG)
- Economy and Society: Ballotpedia's ESG newsletter
External links
Footnotes
- ↑ Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
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