Due Diligence in the EU

🌱 What is the CSDDD? The Corporate Sustainability Due Diligence Directive (CSDDD) makes human rights and environmental due diligence mandatory for large companies operating in the EU. It notably applies to both EU and non-EU companies that meet the thresholds for employee count and net worldwide tu

On 1 June 2023, the European Parliament voted in favor of the draft Corporate Sustainability Due Diligence Directive (CSDDD). The EU now aims to finalize and formally adopt the law before next year. 🌱 What is the aim? The CSDDD “aims to ensure that companies active in the internal market contribut

🌱 What is the CSDDD? The CSDDD aims to “ensure that businesses address [the] adverse impacts of their actions, including in their value chains inside and outside Europe”. More specifically, the directive’s aim is “to foster sustainable and responsible corporate behaviour and to anchor human rights

🌱 What does the directive entail? On 14 December 2023, the European Parliament and Council reached a provisional agreement on the Corporate Sustainability Due Diligence Directive (CSDDD) and the “list of rights and prohibitions that companies should respect”. The directive “aims to enhance the prot

🌱 What is the CSRD? The CSRD mandates that enterprises disclose sustainability information (including information on environmental rights, social rights, human rights, and governance factors) in their financial reports. The intention of the CSRD is to make sure investors and other stakeholders are

The German “Lieferkettensorgfaltspflichtengesetz” – or for short “Lieferkettengesetz” – came into force on January 1st, 2023. 🌱 What does the act encompass? Broadly speaking, the act places enterprises under an “obligation to respect human rights by implementing defined due diligence obligations”.