Corporate Sustainability Due Diligence / Corporate Sustainability Due Diligence Directive (CSDD / CSDDD)
The transformation into a sustainable economy is an essential priority for the European Union. Examples are the European Green Deal and related regulations like the Corporate Sustainability Reporting Directive, the Sustainable Finance Disclosure Regulation or the EU Taxonomy. Companies play an essential role in transitioning into a sustainable future, where the term “sustainable” applies to environmental, social, and economic topics. A harmonised EU legal framework on corporate sustainability due diligence for human rights and environmental impacts is expected to advance this transition. If the Corporate Sustainability Due Diligence Directive gets adopted, it would require companies to identify, prevent, end, or mitigate not only actual but also potential impacts on the environment and human rights. Moreover, conducting due diligence would not be limited to their operations but would extend to the activities of their subsidiaries, including the value chain.
Read more about the CSDDD in our blogpost here.