CSDDD: How Does It Impact My Business?

1.1 WHAT IS THE CORPORATE SUSTAINABILITY DUE DILIGENCE DIRECTIVE ABOUT?

On 24 April 2024, the European Parliament approved the Directive on corporate sustainability due diligence (the Directive). The Council still needs to formally endorse the Directive before it enters into force – this is expected to take place in the coming weeks.

The Directive is an important step in line with the European Green Deal and in delivering on the UN Sustainable Development Goals. The European Commission deemed it essential to have comprehensive mitigation processes for adverse human rights and environmental impacts for companies across all sectors, as their behaviour is key in reaching the aforementioned goals. The Directive will introduce tangible due diligence obligations in order to increase legal clarity and certainty, therefore bolstering a company's sustainability reporting obligations under the Corporate Sustainability Reporting Directive. These due diligence obligations