The European Council Formally Endorsed The CSDDD

After intensive negotiations on the (final) text, the long-expected CSDDD has now formally endorsed by the European Council The CSDDD establishes on the one hand a corporate due diligence duty and reporting obligations to ensure prevention of (potential) adverse impacts on human rights and the environment for in-scope companies on its operations, subsidiaries and supply chains. On the other hand, the CSDDD imposes the obligation to adopt and put into effect a transition plan for climate change mitigation which aims to ensure, through best efforts, that the business model and strategy of in-scope companies are compatible with the Paris Agreement.

Today, on 24 May 2024 the European Council formally approved the finalised text of the CSDDD following the adjusted proposal(s) and final approval by the European Parliament on 25 April 2024 and the Committee of the Permanent Representatives of the Governments of the Member States to the European Union (Coreper) on 15 May