Environmental, Social And Governance (ESG) Update - May 2024

EU Finally Approves Game-Changing Corporate Sustainability Due Diligence Directive Impacting EU and Non-EU Companies

After lengthy and difficult negotiations, on 24 April 2024, the EU Parliament finally approved the Corporate Sustainability Due Diligence Directive (the ‘CSDDD' or the ‘Directive'). This milestone paves the way for its eventual adoption by the EU once the remaining formalities are satisfied (approval by the European Council and subsequently publication in the Official Journal of the EU). The CSDDD is expected to enter into force in Q3 2024 and represents a significant shift in the EU's approach to ESG regulation. It is by far one of the most significant pieces of legislation in the EU's expanding corpus of ESG regulation, and is expected to have a significant impact on companies and their supply chains which are based not just in Europe but elsewhere around the world.