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ARTICLE · 16 OCTOBER 2024

Complying With CS3D—Overlooking Environmental Concerns Is A High Risk Strategy

Mayer Brown
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The incorporation of complex environmental and climate impacts from business operations and supply chains into human rights impact assessments and governance models is proving to be a major challenge for businesses.

GlobalEnvironment
Tim Baines
Tim Baines
Luiz Gustavo Bezerra
Luiz Gustavo Bezerra
Sam Eastwood
Sam Eastwood
James Ford
James Ford
Dylan Geraets
Dylan Geraets
Teresa Gerhold
Teresa Gerhold
Edouard Gergondet
Edouard Gergondet
Michael Hutchinson
Michael Hutchinson
Sydney Mintzer
Sydney Mintzer
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BACKGROUND

The incorporation of complex environmental and climate impacts from business operations and supply chains into human rights impact assessments and governance models is proving to be a major challenge for businesses. Uncertainty about the precise scope of obligations to assess such impacts has meant that companies are struggling to assess environmental and climate impact in a systemic way, which exposes businesses to future liability under the Corporate Sustainability Due Diligence Directive (the "CS3D" or "Directive"). There are notable exceptions – we have seen examples of cement manufacturers, food and beverages companies and forestry companies demonstrate a clear understanding of the environmental dimension, or "lens", but more generally, businesses need to gear up now to ensure they have in place defensible compliance strategies.

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This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.

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