The European Parliament has voted in favour of amendments on the Corporate Sustainability Due Diligence Directive (CSDDD) in the Legal Affairs Committee.

One of the amendments to the CSDDD that was adopted was to give investors and asset managers the duty to engage with investee companies on human rights violations and negative environmental impacts in their value chain.

Members of the European Parliament voted in favour of the amended CSDDD text, which included the investor duty to engage, with a majority of 19 in favour, three against and three abstentions.

The European Parliament plenary is expected to endorse the position on the CSDDD in June.

The Dutch Federation of Pension Funds welcomed the vote on CSDDD, stating that it was in favour of giving investors increased responsibility within the directive, and has previously expressed this to members of the European Parliament (MEP).

It called on MEPs to adopt the article that included the role of investors in engaging on human rights and environmental impacts.

Negotiations between the European Parliament and Council of Ministers will begin once the article has been adopted.

“Since 2018, most of the Dutch pension sector has signed the International Responsible Investment Agreement together with the Dutch government, NGOs and trade unions to implement the OECD guidelines,” the Dutch Federation of Pension Funds stated.

“Dutch pension funds have embedded due diligence in their policies, contracts with asset managers and their engagement policies.

“The sector also works with NGOs, trade unions and the government on joint engagement to address negative impacts in high-risk sectors.”

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