New EU Directive Puts 'Sustainability' Due Diligence Center Stage

The long-awaited EU Corporate Sustainability Due Diligence Directive (CS3D or CSDDD) was adopted May 24, 2024, by decision of the European Council, following approval by the European Parliament one month earlier.

Pursuant to the CS3D, EU member states are to incorporate into national law, within two years, rules requiring a broad range of companies to adopt:

• Due diligence policies to identify, prevent, mitigate and end/minimize certain environmental and human rights harms in their own and their subsidiaries' operations as well as the operations of upstream and certain downstream members of their value chains
• A climate plan to align their business practices with the transition to a sustainable economy