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BRUSSELS – The European Union Council and Parliament have this week agreed a compromise deal on the Corporate Sustainability Due Diligence Directive (CSDDD), including on the inclusion of finance, and the obligation of large corporates to implement climate plans.

Proposed by the European Commission in February 2022, the CSDDD aims to hold large companies responsible for violations of human rights and environmental standards in their supply chains. Its implementation will have potentially major implications for fashion brands with sprawling global supply chains.

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