The CS3D Digest #23
Ripple Research
Ripple Research works at the intersection of data science, behavior change, and social impact.
Welcome to the 23rd edition of The CS3D Digest, a dedicated newsletter by Ripple Research and your weekly compass for navigating conversations that matter in the corporate sustainability landscape. Our goal is simple—to keep you informed about the latest developments in the Corporate Sustainability Due Diligence Directive (#CSDDD) space as we further our understanding of it.
Read our previous editions to catch up, and subscribe for future updates!
Today's focus: EU Parliament approves CS3D, Right-to-Repair, Ecodesign for Sustainable Products Regulation, Ambient Air Quality Directive and EU Forced Labor Regulation.
Let's dive in!
What are we reading?
We've employed our proprietary AI tools to curate the most engaging news about CS3D and related regulations. Our focus extends beyond what's trending at the moment to showcase headlines that are fueling meaningful conversations around the world.
The European Parliament has approved CS3D, with 374 votes in favor, 235 against, and 19 abstentions. The directive mandates firms, along with their upstream and downstream partners, to actively address and mitigate adverse effects such as slavery, child labor, labor exploitation, biodiversity loss, pollution, or the destruction of natural heritage. Key provisions of the directive require EU companies with over 1000 employees and a worldwide turnover exceeding 450 million euros to integrate due diligence into their operations. Similarly, non-EU companies operating within the EU or conducting franchising or licensing agreements must adhere to these regulations if they meet specified turnover thresholds. These companies are obligated to implement due diligence practices, seek contractual assurances from their partners, and develop transition plans aligned with the goals of the Paris Agreement, aiming to limit global warming to 1.5°C. Penalties for non-compliance may include fines of up to 5% of a company's net worldwide turnover, along with the obligation to rectify damages caused by breaching obligations.
The European Parliament has approved a directive reinforcing consumers' right to repair, obliging manufacturers to offer timely and cost-effective repair services, even after the expiration of the legal guarantee period. Additionally, consumers will benefit from an extra one-year extension of the legal guarantee for goods repaired under warranty, encouraging them to opt for repair rather than replacement. The directive also addresses the issue of transparency by requiring manufacturers to provide clear information about repair conditions and services. To facilitate the repair process, an online platform will be established to help consumers locate local repair shops, sellers of refurbished goods, and community-led repair initiatives. Once approved by the Council, member states will have 24 months to transpose the directive into national law.
The European Commission has adopted new rules aimed at reducing energy consumption and promoting repair for local space heaters, including electric radiators and gas stoves, under the Ecodesign for Sustainable Products Regulation (ESPR). This regulatory overhaul broadens the scope of the existing ecodesign measures to encompass additional appliance types, introduces maximum energy consumption levels for low-power modes, and mandates spare parts availability for repairs, thus advancing towards a more energy-efficient and circular economy. By 2040, these measures are projected to save 56 terawatt-hours (TWh) of energy, reduce CO2 emissions by 6.6 million tonnes, and create over 24,000 new jobs.
The European Parliament has formally approved a revision of the Ambient Air Quality Directive (AAQD) that imposes stricter limits on harmful pollutants, such as particulate matter (PM2.5 and PM10) and nitrogen dioxide (NO2), to improve public health outcomes and protect the environment from adverse effects of air pollution. The agreement will establish a comprehensive framework for effective air quality management, focusing on accountability, public engagement, and adaptive management rooted in scientific evidence. It will also include provisions for access to justice, ensuring that individuals and NGOs affected by air pollution can actively monitor and enforce air quality standards. Following approval from the European Parliament, the legislation will now proceed to the Environment Council.
The European Parliament has approved rules to ban the sale, import, and export of goods made using forced labor within the EU, a move primarily driven by concerns about human rights abuses in China's Xinjiang region. Modeled after a similar law enacted by the United States in 2021, this legislation will allow national authorities within the EU to investigate suspicious goods, supply chains, and manufacturers. If a product is found to have been made using forced labor, it will be barred from the EU market, and shipments will be intercepted at the bloc's borders. Once in force, EU countries will be required to start applying the law within three years.
Voices from this week
??Heidi Hautala, Member of the European Parliament, highlights the collaborative effort of a broad coalition of actors, including lawmakers, civil society organizations, businesses, academia, and trade unions, in achieving the adoption of CS3D.
??Alejandro García Esteban, Political Advisor at European Parliament, reflects on their seven-year journey from academic research to active involvement in advocacy and legislative initiatives related to corporate accountability and responsible business conduct, culminating in the passage of CS3D.
??Bart Devos, VP of Public Policy at Responsible Business Alliance , emphasizes the potential of CS3D, despite recent concessions, in reshaping the corporate sustainability landscape while acknowledging implementation-related challenges that will require broader engagement with non-EU countries.
??Catarina Vieira, #10 Candidate for GroenLinks-PvdA to the European Parliament, emphasizes the potential of CS3D, despite recent concessions, in reshaping the corporate sustainability landscape while acknowledging implementation-related challenges that will require broader engagement with non-EU countries.
??European Environmental Bureau discusses the two new laws approved by the European Parliament, ESPR and the directive on right-to-repair, to safeguard consumer rights and environmental sustainability.
Enjoy our content? Share your thoughts and ideas for future editions of The CS3D Digest in the comments. Don't forget to follow Truth Be Told, our newest initiative to keep you abreast with the latest developments in the world of mis- and disinformation.
Thanks for reading, and we will see you next time!
About us:
Ripple Research works with policymakers, researchers, businesses, and philanthropies to build resilient societies. We apply large-scale behavioral and cultural insights uncovered through big data analysis and machine learning to design solutions for impact-driven organizations. Our contributions have earned recognition from international global media outlets, including The New York Times, POLITICO, Vox, Fast Company, and Forbes.
If you're a business, non-profit, academic institution, or mission-driven organization embracing corporate sustainability as a focus, we're open to exploring collaborative opportunities. To learn how Ripple Research can contribute to your mission and impact, please get in touch.