Contestation of CS3D in the EU: Affecting the scope and strength of climate due diligence

The Corporate Sustainability Due Diligence Directive (CS3D) was proposed by the European Commission with two key objectives: implement a reporting requirement for due diligence to avoid adverse human rights and environmental impacts by companies and enforce accountability in the case of such impacts. A provisional agreement was reached in December 2023 that recognised the need for averting adverse corporate impacts on the climate and environment, which had been under contestation from the business sector. Finally, a comparatively reduced form of climate change policies was integrated into the CS3D. In this paper, I seek to understand the private sector’s engagement in shaping the substance and framing around climate change in the CS3D. Using content analysis of the European Commission consultations, this paper draws on theories of norm contestation and transnational private governance to understand how contested meanings of climate change issues by private actors ultimately affect the scope and stringency of climate due diligence. I propose that factors at the international, national and market level, all played a role in the unified stance of business interest groups lobbying against climate change. It contributes to the larger literature on private sector perception in context of supply chain regulations that have overlooked the integration of climate change. Furthermore, it plays into the role of private corporations in policy-making that will ensue as the directive is transposed into national laws.