CSDDD

The Corporate Sustainability Due Diligence Directive aims companies to promote the protection of the environment and human rights in the European Union and globally. At the heart of these measures is the creation of transparency by regulating the supply chains of European companies.

The due diligence directive set obligations regarding their own operations and those carried out by their business chain, which covers the upstream partners and suppliers and the downstream activities.

The Directive will apply to 5500 very-large companies with over €450 million worldwide turnover and more than 1000 employees. The provisional agreement needs to be formally approved in April by the Members of the European Parliament.

What are the benefits of these new rules?

For citizens

– Better protection of human rights, including labour rights.

– Healthier environment for present and future generations.

– Increased trust in businesses.

– More transparency enabling informed choices.

– Better access to justice for victims.

For companies

– Harmonised legal framework in the EU, creating legal certainty and level playing field.

– Greater customer trust and employees’ commitment.

– Better awareness of companies’ negative environmental and human rights impacts.

– Better risk management and adaptability.

– Increased attractiveness for talent, sustainability-oriented investors and public procurers.

– Higher attention to innovation.

– Better access to finance.

For developing countries

 – Better protection of human rights and the environment.

– Increased stakeholder awareness on key sustainability issues.

– Sustainable investment.

– Improved sustainability-related practices.

– Increased take-up of international standards.