Article 12: Remediation of actual adverse impacts

Marian G. Ingrams, Joseph Wilde-Ramsing and David Ollivier de Leth

Chapter 11 in Sustainable Business in Europe, 2026, pp 152-167 from Edward Elgar Publishing

Abstract: This chapter analyses alignment between the remedy provisions of the CSDDD and of the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct (Guidelines) – a core pillar of the international normative framework for corporate accountability. The chapter finds the CSDDD broadly aligns with the Guidelines regarding remedy, notably by defining remediation as a step of due diligence to be provided by companies causing or contributing to harms. The CSDDD's provisions are weaker in facilitating access to remedy on a few topics related to ensuring the effectiveness of corporate-level grievance mechanisms, assuring robust stakeholder engagement to inform the remediation system and process, and clarifying the responsibility of companies to remediate impacts from reprisals as well as underlying business activities. In other areas, the Guidelines and CSDDD differ as regards remediation. Of note, the CSDDD falls short of the Guidelines by assigning companies that are only “directly linked” to harm just a voluntary role in remediation. The CSDDD also falls short of the OECD due diligence guidance's focus on whole, versus proportionate, remediation. Further, the CSDDD's narrower material scope may result in remediation of fewer harms. In contrast, the CSDDD makes a vital improvement on the voluntary OECD Guidelines by empowering government authorities to compel remediation. The chapter concludes by offering recommendations to close gaps between the CSDDD and the Guidelines to ensure the most robust interpretation and implementation of the Directive's remediation provisions aligned with the international normative framework.

Keywords: Access to Remedy; OECD Guidelines; International Due Diligence Policy Alignment; Corporate Responsibility to Remediate; Mandatory Human Rights Due Diligence (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035326891
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