Sustainability-related regulations are on the increase globally 🌐 Understanding how these apply to your business is critical now more than ever. Today we’ll be looking specially at the CSDDD.

Last month, after much negotiation the critical points of the Corporate Sustainability Due Diligence Directive (CSDDD) were agreed 👏 The Directive’s text will now be finalised in technical meetings, and final adoption will occur in 2024. In the meantime, learn more below about the CSDDD 💡

WHO WILL IT APPLY TO?

The CSDDD will apply to large EU limited liability companies with more than 500 employees and a net worldwide turnover of more than EUR 150 million, as well as companies with more than 250 employees and a net worldwide turnover of more than EUR 40 million, if at least 50% of this turnover is generated in a high-impact sector (e.g. textiles, agriculture, mining). Additionally, non-EU companies whose EU turnover exceeds the above thresholds will also be captured.

WHAT IS THE PURPOSE?

The CSDDD aims to ‘foster sustainable and responsible corporate behaviour and to anchor human rights and environmental considerations in companies’ operations and corporate governance.’ The Directive will enhance the protection of human rights and the environment and increase the dialogue between businesses and communities across their value chains on sustainability.

WHAT IS REQUIRED?

The Directive establishes a corporate due diligence duty, which means that businesses must identify, respond to, prevent and mitigate negative human rights and environmental impacts in both they operations and value chains. It also introduces new duties for directors of covered companies, including for directors to set up and oversee the implementation of due diligence processes, and to integrate due diligence into corporate strategies.

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#duediligence
#csddd
#sustainability