
Corporate Sustainability Due Diligence Directive (CSDDD)
In 2024, the EU completed the approval process for the Corporate Due Diligence Directive (CSDDD), which focuses on preventing and mitigating negative human rights and environmental impacts within corporate supply chains. The Directive substantially expands the responsibility of companies for the impacts not only of their direct business activities, but especially for the impacts of the activities of their subsidiaries and business partners. The new rules will affect companies operating in EU markets, with the effectiveness of the regulation differentiated according to the criteria of number of employees and company turnover. The first wave of companies is expected to be subject to the new requirements by 2027. The CSDD represents a key step towards strengthening corporate accountability for problematic aspects of their supply chains.
The publication Guide to the Corporate Sustainability Due Diligence Directive introduces the regulation and new terms in more detail, and introduces the requirements that obliged entities will have to take into account during implementation.