Navigating The ESG Landscape: Cheat Sheet For The CSDDD

The Corporate Sustainability Due Diligence Directive (CSDDD) has entered into effect on 25 July 2024. In three years from now, the first wave of in-scope companies will legally be obliged to comply with the CSDDD. Our ESG litigation team has prepared a comprehensive overview of the scope, timelines, main obligations and control systems of the CSDDD.

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.