Strengthening the Efficacy of the CSDDD through Private International Law

With the rise of expectations regarding corporate sustainability, the regulatory landscape for companies has expanded to encompass both international and national dimensions. This expansion is a response to the far-reaching ecological and social consequences of corporate activities that transcend national boundaries. Notably, the European Union (EU) has also realized this aspect while addressing these global concerns, as evidenced by the formulation of the Corporate Sustainability and Due Diligence Directive (‘CSDDD’ or ‘Directive’). The CSDDD mandates a corporate due diligence obligation applicable to companies both within and outside the EU, with the objective of integrating environmental and human rights considerations throughout the whole corporate supply chain.

However, despite its ambitious objectives, the CSDDD’s approach to private international law may undermine the overall efficacy of the CSDDD. Specifically, the Directive lacks provisions related to choice-of-law rules on applicable law and jurisdiction which are critical instruments that facilitate access to justice and complement the EU’s due diligence policy. In the absence of strong private enforcement, the reliance on public enforcement through the national supervisory authorities emerges as a pragmatic recourse. In keeping with this discourse, this paper demonstrates the deficiencies of the CSDDD concerning private international law instruments and subsequently explores the viability of public enforcement as a more effective avenue for facilitating access to remedy for claimants.