Investor groups have called on EU states to back a deal that would require large companies to check their supply chain for damage to the environment and rights abuses.
The deal would see companies face fines if they do not address issues.
European Union countries today postponed the decision.
Abstained
A ‘qualified majority’ of 15 EU countries representing 65% of the EU population is needed to proceed the final vote to European Parliament.
Lawmakers are expected to support the deal once it makes it to the parliament.
It was not clear today whether a sufficient number of envoys from the 27 member states backed the law.
Germany abstained after criticising the law, fearing it will create bureaucracy and legal uncertainties.
Representatives of EU states and the European Parliament reached a deal on the draft EU law, known as the Corporate Sustainability Due Diligence Directive in December.
It aims to give investors more information on sustainability issues.
‘Green Deal’
It is the central pillar of the “Green Deal”, a series of rules that aim to help investor groups reach their climate and broader sustainability goals by mid-century.
However, the deal has faced growing push back amid the cost of living crisis.
Investors have consistently pushed for more detailed data from retail companies about environmental and social issues to more accurately track their own sustainability goals.
Analysts estimate the rules would apply to about 13,000 companies in the EU and 4,000 outside the bloc.
The EU has approved a number of ground breaking rules to help mitigate and meet its net-zero economy commitment by 2025. However, there is now some opposition emerging.
The investors group includes the Institutional Investors Group on Climate Change (IIGCC), Principles for Responsible Investment (PRI), the European Sustainable Investment Forum, the Interfaith Centre on Corporate Responsibility (ICCR) and the Investor Alliance for Human Rights (IAHR).
Read More: Europe Gains Powers To Tackle Supply Chain Emergencies
