EU Supply Chain Act: Current status and impact on the financial sector

EU Supply Chain Act: Current status and impact on the financial sector

According to a report by www.derstandard.de, the decision on the EU supply chain law, also known as CS3D (Corporate Sustainability Due Diligence Directive), has been postponed for the time being. The EU Council voted on the directive on Friday, but a qualified majority could not be achieved in favor of the proposal.

This unexpected postponement of the decision on the EU supply chain law has potentially significant implications for the financial industry and the market. The passage of such a law would require companies to ensure compliance with human rights and environmental standards along their supply chain. This could result in increased costs for companies as they may have to take additional measures to monitor their suppliers and adapt their business practices.

For financial experts, this could mean that they have to analyze and evaluate the economic impact of such a law on the companies affected. This could also change investment strategies and risk assessments. The postponement of the decision also creates uncertainty regarding the regulatory landscape, which could impact investment decisions and market confidence.

It remains to be seen how the debate about the EU supply chain law will develop and what consequences this could have for the financial industry.