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Due diligence in the arms sector: Possible implications of the EU Corporate Sustainability Due Diligence Directive

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The EU Corporate Sustainability Due Diligence Directive (CSDDD), adopted in June 2024, represents a significant effort to enforce corporate accountability for human rights and environmental impacts. However, the Directive’s application to the arms sector is limited due to exclusions in downstream activities such as the sale and use of arms. These exclusions potentially create gaps in accountability, allowing companies to avoid addressing human rights risks linked to the end-use of their products.

However, this IPIS Insight argues that the exemption of the arms sector is not as clear-cut as it might appear. The ambiguity surrounding the CSDDD’s provisions for the arms sector presents challenges. By leaving downstream due diligence obligations unclear, the directive risks inconsistent implementation across EU member states. Countries with robust regulatory frameworks may enforce stricter standards, while others may not. Without clear mandates for downstream monitoring, the sector faces heightened risks of complicity in human rights abuses, particularly when arms are sold to conflict zones or authoritarian regimes.

To address these issues, it is crucial for EU Member States to adopt stricter national provisions that align with international due diligence standards. Clarifying the CSDDD’s provisions and extending its scope to encompass all aspects of the arms trade, including the sale and use of arms, would enhance accountability and contribute to aligning the sector with the EU’s broader human rights and sustainability objectives.

This publication has been produced with the financial assistance of the Belgian Directorate-General for Development Cooperation and Humanitarian Aid (DGD). The contents of this document can under no circumstances be regarded as reflecting the position of the Belgian Development Cooperation.