After a volatile political journey, the EU is poised to adopt
the new Corporate Sustainability Due Diligence Directive
("CS3D") in the coming months, after
being approved by the European Parliament in April 2024.
Matheson's Garret Farrelly explains.
CS3D will, when adopted, require EU member states to introduce
laws requiring in-scope companies to significantly enhance
environmental and human rights due diligence in their business
conduct.
Due Diligence Requirements
The version of CS3D endorsed by the European Parliament has
changed significantly from the version initially proposed by the
Commission in February 2022. In particular, aspects of the proposed
CS3D were cut back, in light of concerns raised by several EU
member states about the possible administrative burden for
companies in their jurisdictions. Under the text approved by the
European Parliament, in-scope companies would be required to:
