EU Directive on Business Sustainability Due Diligence - Obligations for Companies

On July 5, 2024, the final text of the Corporate Sustainability Due Diligence Directive (CSDDD) was entered into the Official Journal of the EU. The CSDDD will enter into force on July 25, 2024. This is the last key step in the legislative process and a significant milestone in the implementation of the requirement that companies incorporate responsible business practices into due diligence processes and policies. The CSDDD is one of several legislative acts proposed by the EU within the framework of the European Green Deal.

The CSDDD establishes obligations of corporate due diligence. In particular, the CSDDD requires relevant companies to identify, prevent and mitigate potential actual adverse human rights and environmental impacts associated with their operations, including upstream and downstream impacts. It also seeks to provide access to complaint mechanisms and legal remedies for those affected by violations of the provisions of the CSDDD.

This article covers key aspects of CSDDD and details high-level guidance on how potentially affected companies can prepare. (More on lexology.com)