WASHINGTON, D.C. - Marjorie Chorlins, senior vice president for Europe at theU.S. Chamber of Commerce, made the following comments regarding the position adopted by the European Parliament’s Committee on Legal Affairs (JURI) on the Corporate Sustainability Due Diligence Directive (CS3D.)
“While the amendments adopted by the JURI Committee address some business concerns about CS3D, the text fails to tackle the most significant ones for impacted companies and their supply chains. The Committee’s text includes a mandate to adopt climate transition plans that will result in regulatory overlap, high compliance costs, and legal uncertainty for companies operating in Europe and globally. In addition, its call for an EU wide civil liability regime will lead to excessive, frivolous, and expensive litigation. Perhaps most concerning, it does not address significant concerns about the extraterritorial impact of CS3D. As the U.S. Chamber noted in our recent report, CS3D upends well-established principles of territoriality and sovereignty in international law, imposing obligations on company activities outside EU territory and creating legal conflicts with U.S. laws.
“The Chamber urges EU policymakers to address these challenges specifically and craft a balanced, practical framework that supports sustainable business practices without compromising the EU’s own economic vitality, infringing on regulatory sovereignty, and adding friction to transatlantic relations.”
