Macron Joins Germany's Call to Scrap EU Supply Chain Sustainability Law at "Choose France" Summit

Key Takeaways

• Macron’s Position: French President Emmanuel Macron has joined German Chancellor Friedrich Merz in calling for the elimination of the EU's Corporate Sustainability Due Diligence Directive (CSDDD), aiming to reduce regulatory burdens on businesses.
• Regulatory Simplification: Macron emphasized the need for Europe to synchronize with global competitors, like the U.S. and China, by removing or significantly revising the law to boost competitiveness.
• CSDDD’s Requirements: The law, adopted in May 2024, requires companies to address human rights and environmental impacts across their supply chains, with significant focus on issues like child labor, slavery, pollution, and deforestation.
• Revisions and Delays: The directive has already undergone revisions, including raising the employee threshold to 1,000 and delaying full implementation to 2028. The EU Commission’s Omnibus process proposes further changes, such as reducing the frequency of due diligence monitoring.
• Broader Debate: Macron’s call to scrap the CSDDD reflects ongoing tensions within the EU between sustainability regulations and the need for a business-friendly environment, raising questions about Europe’s future regulatory approach.

Deep Dive

French President Emmanuel Macron has added his voice to the growing opposition against the European Union's Corporate Sustainability Due Diligence Directive (CSDDD), aligning with German Chancellor Friedrich Merz’s call to scrap the law entirely. The directive, which was adopted in May 2024, mandates that companies assess, prevent, and mitigate their impacts on human rights and the environment across their supply chains, including issues like child labor, slavery, deforestation, and pollution.

Addressing global business leaders at the "Choose France" International Business Summit on Monday, Macron framed his position as part of a broader effort to reduce regulatory burdens on businesses, making them more competitive with companies in the U.S., China, and other global markets. He emphasized the need for a level playing field that would foster stronger economic performance and cooperation.

“We are clearly aligned now with Chancellor Merz… CSDDD and some other regulations have to not just be postponed for one year, but put off the table entirely,” Macron stated.

The CSDDD, proposed by the European Commission in February 2022, was designed to hold companies accountable for their supply chains and the impact they have on the environment and society. However, the law faced significant pushback during its drafting process, especially from France, which pushed to limit its scope. Initially, the directive applied to companies with 500 or more employees, but France’s intervention raised the threshold to 1,000 employees, effectively excluding a large portion of smaller businesses from its obligations.

The law was further revised in 2024 to reduce its scope, pushing back its implementation timeline to 2028, and proposing key changes such as narrowing the due diligence obligations to only direct business partners and reducing monitoring frequency from annual to every five years.

In addition to the delays, the EU Commission’s Omnibus process, launched in February 2025, proposed further changes to lighten the regulatory load on businesses. These include limiting the amount of information that can be requested from smaller companies and reducing the frequency of due diligence reviews. France had already advocated for a longer delay in the law’s implementation, even calling for an indefinite postponement.

While Macron expressed a desire to simplify the CSDDD, he went further in his comments, calling for the law’s outright elimination. He stressed that his stance was not based on the content of the law but on the need to align regulatory frameworks with global counterparts like the U.S., which has been hesitant to adopt similar regulations.

“I’m not even speaking about the content. I’m just speaking about how to synchronize with the U.S. and the rest of the world,” Macron stated.

The call to repeal the CSDDD marks a significant moment in the ongoing debate about the balance between regulatory obligations and global competitiveness. As the EU continues to evolve its sustainability regulations, Macron’s comments signal a shift towards rethinking Europe’s approach to corporate responsibility and its broader economic strategy.

The CSDDD remains a point of contention within the EU, as it underscores the growing tension between sustainability goals and the business community's concerns about regulatory overreach. While the French President’s remarks indicate a strong push for change, it remains to be seen whether his call to eliminate the law will gain traction across the EU.

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