EU Business Sustainability Due Diligence Directive (CSDDD)

Directive of the European Parliament and of the Council (EU) 2024/1760 of June 13, 2024 on due diligence of businesses in the field of sustainability and on amending the directive (EU) 2019/1937 a of Regulation (EU) 2023/2859, which entered into force on July 25, 2024, represents an important step by the European Union (EU) to integrate sustainable practices into the basic operational strategies of companies. The CSDDD is an EU legislative step towards the integration of sustainable and responsible business operations in order to support a more sustainable economy. The new rules will apply to large EU companies as well as non-EU companies generating a net turnover of more than €450 million in the EU (at entity or group level), including asset managers. The new rules are expected to come into effect in phases, starting in 2027. The new rules also introduce a new right of civil action against a company that fails to meet its sustainability due diligence obligations and as a result causes harm to certain human or environmental problems. rights of a natural or legal person. In preparation for the gradual implementation of these changes, companies may consider taking proactive compliance measures in anticipation of the transposition of the CSDDD into national law by EU member states over the next two years. (Harry Keegan, Ezra Zahabi, George O'Malley, more at lexology.com )