Making human rights due diligence a legal requirement for companies including systems to identify, assess, mitigate or manage human rights risks and impacts to improve that process over time and to disclose the risks and impacts, the steps taken and the results.
It welcomes a regulation at EU level, however considers EU sustainability initiatives must be closely coordinated in terms of content.
The entity indicates that ‘BASF believes that the issue of human rights in the supply chain is best regulated at the supranational level, hence at least at the European level, since national laws would not sufficiently reflect the complexity of global supply networks. We welcome the European commitment regarding the Corporate Sustainability Due Diligence Directive (CS3D) to create a harmonized framework for human rights due diligence and we are open to participating in the discussions'.
Although the Company shares some concerns regarding the content of the proposal, it welcomes an EU level harmonization of national legal frameworks for due diligence.
The entity indicates that ‘we welcome the harmonization of national legal frameworks for due diligence in the EU as foreseen by the proposed EU Directive on Corporate Sustainability Due Diligence announced in February 2022. We are convinced that respecting human rights and protecting the environment in the supply chain is best regulated at the supranational level, at least at European level’. However, it makes some requests of changes, as for instance it calls for ‘Clear definitions and the precise description of due diligence requirements’.
BASF states its support for the CSDDD and marginally distances itself from the points set out in the Evian Letter
"Regarding CSDDD: We have consistently argued that regulation should be effective and practicable. A single, well-designed European regulation is preferable as a level playing field to a patchwork of national rules. For us, the core message of the letter is that we must give greater weight to economic competitiveness alongside ecological and social objectives. Many companies, including BASF, want and support a successful sustainability transformation; therefore competitiveness must be balanced with environmental and social considerations. Although the wording of the individual passages has not been aligned with all companies and therefore does not necessarily reflect our opinion on every single issue, the basic message and the topics addressed in the letter touch on crucial points for competitiveness and thus an important aspect of sustainability of industry and society in Europe. We therefore see the letter as an appeal to policymakers, society and business to work together for fewer and better rules, and we are committed to continuing a critical yet constructive dialogue with all stakeholders."
This joint statement signed by the CEOs of TotalEnergies SE and Siemens AG calls for the abolition of the CSDDD on behalf of the entities attending the 2025 Evian conference which includes this entity. There is no evidence of the entity stating support for the statement, it is added for clarification but the assessment is not part of the organisational score for this entity.
"CEOs call for the full abolishment of CS3D as a clear and symbolic signal to European and international companies that the governments and the Commission are really engaged to restore competitiveness in Europe."
Enabling judicial enforcement with liability and compensation in case of harm caused by not fulfilling the due diligence obligations.
The Company rejects liability for business partners' actions.
It states that 'Companies can only be liable for their own activities and not for the activities of their business partners or their suppliers. Civil liability should be limited to cases where the damage can be attributed to or is foreseeable as a consequence of a company’s actions. A mechanism which foresees liability for the actions of the perpetrator would be consistent with the established existing legal system across the EU and bring EU-wide harmonization'.
Require companies to implement a due diligence process covering their value chain to identify, prevent, mitigate and remediate human rights impacts and improve that practice over time.
The entity opposes extending liability across the value chain beyond direct suppliers.
It states: ‘Due diligence obligations should be limited to the supply chain and the level of direct suppliers (Tier 1). The inclusion of companies’ entire value chain would lead to unmanageable obligations and unforeseeable risks. ... The envisaged liability for suppliers beyond direct suppliers is therefore not realistic’.
| Legislation | Position |
|---|---|
| EU CSDDD | Not Supporting |
| Omnibus | Not Supporting |
| Trade Association | Performance band |
|---|---|
| CSR Europe | C+ |
| Cobalt Institute | C+ |
| European Precious Metals Federation (EPMF) | D |
| Eurometaux | D- |
| CLEPA | E+ |
| CEFIC - European Chemical Industry Council | E |
| econsense | E- |
| International Platinum Group Metals Association | E- |
| BUSINESSEUROPE | F |
| Confederation of Danish Industry | F |