Story of Change
How STITCH contributed to the EU CSDDD, and what is at stake
The adoption of the Corporate Sustainability Due Diligence Directive (CSDDD) by the European Parliament on April 24, 2024, marked a major milestone in corporate accountability, requiring in-scope companies to address human rights and environmental impacts across their supply chains. The STITCH partnership played an important role in shaping this directive through a strategic, coordinated effort that leveraged diverse perspectives, expertise and networks to inform what effective legislation looks like. The STITCH consortium’s work exemplifies the importance of partnerships in driving systemic change, particularly in the highly fragmented garment sector.
The approach taken by the consortium – fostering close collaboration between the business community and trade unions – is even more significant considering the current uncertainty surrounding the Omnibus proposal by the EU Commission, which could weaken key aspects of the already adopted CSDDD. Taking a united stance, STITCH demonstrated throughout the legislative development why and how this law is vital in advancing human rights.
Leveraging diverse, complementary insights
When STITCH set out in 2021 to push for an EU-wide due diligence law, the partners knew they would add most value by leveraging and aligning the various perspectives, insights and networks to joint recommendations. Fair Wear and some of its company members spoke to business-minded policymakers, showcasing that responsible supply chains were not just possible, but profitable. Trade unions Mondiaal FNV and CNV Internationaal brought raw, first-hand stories from garment workers to MEPs, providing them with knowledge and insights on why binding rules were needed.
But what truly set STITCH apart was its ability to unify different voices behind a shared message. The coalition combined business insights, worker perspectives, and policy expertise to build a powerful, evidence-based case. Their messaging on responsible purchasing practices, meaningful stakeholder engagement, and sector-wide accountability was repeated over and over in Brussels corridors. And it worked.
“It helps enormously when someone of that calibre reiterates the same points you as a Dutch organisation have been making all along, using the authority of a European perspective.”
– Anne Wehkamp of CNV Internationaal on a high-level spokesperson from the European Trade Union Confederation (ETUC) speaking at a session about the CSDDD organised by the Dutch government
Turning point moments: When joint efforts made the difference
One of the defining moments came in November 2022, when two STITCH partners co-organised an event in Brussels that brought together high-level representatives from the four largest political groups in the European Parliament. The aim was to convince MEPs of the feasibility of human rights due diligence and inform the development of effective legislation to mandate it. In a packed room, European business leaders, suppliers, and policymakers sat face-to-face. A small garment supplier from Turkey took the mic and shattered a myth: due diligence wasn’t an impossible burden for businesses—it was an opportunity. Policymakers saw due diligence in a new light: as an effective framework for shared responsibility, not red tape.
Then in late 2023, Germany unexpectedly threatened to block the vote on the provisional agreement of the EC and EP on the scope of CSDDD. The law was on the brink of collapse, but STITCH and its allies sprang into action: more than 20 brands joined forces, pressuring German ministers to hold the line.
The STITCH allies’ united efforts were part of broader call in favour of the directive from the sector. Thus, the CSDDD survived.
“The fact that we could bring in real-life examples of companies of all sizes that practice what they preach, and that already manage to compete in the market while supporting ethical business principles, was extremely helpful. Such examples are convincing and stick with people.”
– MEP Heidi Hautala
STITCH input reflected in the CSDDD
The CSDDD adopted in 2024, now subject to partial amendment in accordance with the recent Omnibus proposal by the EU Commission, embedded key elements for effective HRDD that STITCH and other allies had called for:
A risk-based approach: Companies must proactively analyse and prioritise their most severe risks, taking a preventive approach.
Grievance mechanisms: Businesses may rely on industry initiatives regarding grievance mechanisms in their due diligence processes.
Meaningful stakeholder engagement: Businesses must involve (potentially) affected stakeholders – workers, trade unions, civil society organisations, suppliers – across the due diligence cycle (in the adopted version of the CSDDD, this applies to four steps of the due diligence cycle out of six).
Responsible purchasing practices: Acknowledging that buyer behaviour drives labour abuses, the legislation calls for the adoption responsible purchasing practices
Yet, there was one key point on which the CSDDD does not follow the recommendations of STITCH: the law only applies to large companies, leaving many SMEs outside its scope.
“Making human and environmental rights due diligence mandatory sends a powerful signal to all multinational companies that taking responsibility for the potential negative effects of their trading is the only future-proof way of doing business”.
– STITCH on the adoption of CSDDD
Why our policy recommendations were essential
Diverse stakeholders validated our position – The diversity of perspectives supporting our stance—brands, trade unions, and local partners—shows that our proposals reflect real-world needs. Policymakers took them seriously because they came from those directly affected.
Real-life stories proved the need for change – The first-hand experiences reinforced the urgency of our recommendations. Our proposals were not abstract ideals but grounded in the lived realities of workers and businesses.
Research and evidence support our arguments – Policymakers responded to our position because it was backed by robust data from production countries, proving that our recommendations were both practical and necessary for effective CSDDD implementation.
Suppliers offer irreplaceable insights – As the link between workers and brands, suppliers provided perspectives that policymakers could not afford to ignore. Their input confirmed that our proposed legislative changes were both viable and essential.
Challenges under the Omnibus proposal
The future of the CSDDD remains uncertain. The Omnibus proposal, adopted by the European Commission in February 2025, threatens to weaken the effectiveness of the CSDDD by removing civil liability for non-compliance and limiting due diligence requirements to direct business relationships. These changes undermine enforcement, erode the level playing field, and move away from a truly risk-based approach.
Whatever version of the CSDDD is ultimately adopted, the next challenge will be ensuring impactful implementation—through strong guidelines, facilitation support, and clear norms on how to conduct due diligence effectively. STITCH partners are committed to providing their insights and sharing their experiences in this process. After all, for advancing human rights and creating resilient supply chains, there is no real alternative to impactful due diligence.