CSDDD Unpacked: Steering Corporations Towards Sustainable Practices

This briefing is the first in a series on the Corporate Sustainability Due Diligence Directive (CSDDD) that BLOMSTEIN will be publishing over the coming weeks. We will address the key aspects that (in)directly affect businesses both within and outside the EU, explore its interplay with the existing legislation in Germany (LkSG) and examine interactions with other acts recently adopted EU legislation (e.g., EUDRandCSRD) which partially set overlapping obligations.

Scope of the Directive

On 24 April 2024, the European Parliament approved the Corporate Sustainability Due Diligence Directive (CSDDD or Directive), an important part of the European Green Deal package.Following intense discussions, the endorsement was contentious, with significant doubts about its adoption, as evidenced by the 235 dissenting votes against the 374 votes in favour—a rejection rate of nearly 40%.