In this event, organised by the International Economic Law and Policy Working Group, Markus Krajewski (EUI Visiting Fellow) will present part of his ongoing work on business responsibilities under EU law.
In this event, Markus Krajewski will present part of his ongoing work on business responsibilities under EU law. A draft of the paper he is currently working on will be circulated among the registered participants prior to the event. The paper will be discussed by two EUI PhD Researchers, Isola Clara Macchia and Kunhao Yang, who will present part of their ongoing work along the same lines. An open discussion will allow all participants to comment on and exchange ideas on each presentation.
Markus Krajewski, The global reach of the EU law on responsible business conduct: Competences, coherence, conflicts
In recent years, the European Union adopted a variety of legislative measures aimed at ensuring business responsibilities with regards to human rights and the environment. These measures include the Corporate Sustainability Due Diligence Directive (CSDDD), transparency legislation such as the Corporate Sustainability Reporting Directive (CSRD) and Sustainable Finance Disclosures Regulation, as well as product-specific legal instruments on deforestation-free products, batteries, conflict minerals, and critical raw materials. Some of these instruments aim directly at production methods in third countries, while others have such effects indirectly through an 'extraterritorial extension' of EU law or the so-called 'Brussels effect'. The legislative instruments are complemented by provisions on responsible business conduct in bilateral trade agreements, which the EU concluded in recent years. At the same time, the EU remains on the sidelines of multilateral negotiations on a UN treaty on business and human rights. The paper assesses the different instruments of the EU on responsible business conduct from the perspective of EU constitutional law and shows the global reach of the EU law on responsible business conduct. In particular, the paper identifies the competences of the EU and asks whether and to what extent the EU adheres to 'the principles which have inspired its own creation, development and enlargement' (Article 21 TEU) and the principle of policy coherence. Furthermore, the paper argues that the current approach of the EU – while nominally based on international standards and guidelines – conflicts with the principles of international cooperation and global solidarity.
Isola Clara Macchia (EUI), From Dialogue to Dialogue+? The EU's Structural Partiality for Cooperation in Enforcing TSD Chapters
Trade and Sustainable Chapters have become a trademark of European trade policy. However, critics have long argued that these chapters 'lack teeth', as their enforcement mechanisms are entirely built on cooperation. Since the 2021 Trade Policy Review, the European Commission has agreed to look into including sanctions in its enforcement approach. Ultimately, it concluded the 2023 EU-New Zealand FTA according to this new model, foreseeing temporary remedies for TSD violations. Examining the legal design of these remedies, this presentation shows that the European approach remains ultimately cooperative. It argues this is due to specific institutional preferences on how international law should be shaped and what kind of image the EU aims to promote with its partners, even at the expense of enhanced effectiveness on the ground.
Kunhao Yang (EUI), The Global Reach of CSDDD: From the Perspective of the Corporate Accountability Mechanism
The Corporate Sustainability Due Diligence Directive (CSDDD) establishes a due diligence obligation that requires certain large companies operating in the EU internal market to identify, prevent and address the adverse impacts on human rights and the environment throughout the entire global ‘chain of activities’. The global reach of the CSDDD is manifested not only in the substantive due diligence obligations but also in its corporate accountability mechanisms. This presentation examines the legal design of the corporate accountability mechanism, exploring its role in extending the reach of EU sustainability standards to third countries. The presentation will also discuss how this mechanism reflects the jurisdictional technique of ‘territorial extension’.