Study "Economic effects of the EU CSDDD considering the Omnibus process" - by Prof. Johannes Jäger
A groundbreaking new study led by Prof. Johannes Jäger (link here) has been published by CIDSE, ETUC, Misereor, Ver.di and other organisations. , unveiling strong evidence that the EU’s Corporate Sustainability Due Diligence Directive (CSDDD) will bring significant economic benefits for Europe and beyond.
The study demonstrates that the directive is not only a vital tool for tackling human rights violations, particularly in the Global South, but also a driver of long-term economic welfare. By creating a more sustainable and fairer framework for European businesses, the CSDDD strengthens competitiveness and innovation without sacrificing ethical standards.
Key findings include:
Positive economic welfare effects: By reducing human rights violations, the CSDDD directly improves economic well-being, with especially significant benefits for workers and communities in the Global South.
Boost to European competitiveness: The directive promotes forward-looking specialisation patterns that move away from exploitative practices, delivering dynamic gains at the company level and generating positive spill-over effects for the wider economy.
Foundation for global standards: The CSDDD provides a crucial step toward binding international social and environmental regulations that will enhance both global human rights protections and Europe’s long-term economic performance.
Risks of weakening the directive: Attempts to increase competitiveness and reduce bureaucracy by diluting the CSDDD are expected to fail. Such changes would undermine its effectiveness, impose costs without real benefits, and continue to leave European firms vulnerable to unfair competition from companies abroad engaging in social and environmental dumping.