THE PROPOSED CORPORATE SUSTAINABILITY DUE DILIGENCE DIRECTIVE (CSDD), A “COPERNICAN REVOLUTION” IN CORPORATE GOVERNANCE.
On 14 December 2023, the Council and the European Parliament reached a provisional agreement on the directive on companies’ due diligence obligations for sustainability of their activities. The obligations are a result of the negative impact (effective and potential) of business activities on the environment and human rights. Pending final approval, can companies start preparing?
On 23 February 2022, the Commission submitted a proposal to the European Parliament and the Council for a directive on companies’ obligations for the sustainability of their activities. Almost two years later, on 14 December 2023, Parliament and Council reached a provisional agreement on the text. If, as seems likely, this text will be approved and formally adopted, the directive will require companies to responsibly manage the human rights and environmental consequences originating from the activities of companies, their subsidiaries and, more generally, their partners and those in their supply chains.
