A recent development in the European Union has seen the approval of the Corporate Sustainability Due Diligence Directive (CSDDD) by the European Council on March 15. This directive introduces a legal liability for companies concerning environmental and human rights violations within their supply chain. The final version of the CSDDD, which has not been officially released by the Commission, was shared with the European Parliament for review.
The CSDDD, also known as the CS3D, sets a standard for corporate due diligence on sustainability matters for businesses operating in the EU, focusing primarily on environmental issues, climate change, and human rights. The new requirements extend not only to a company's direct operations but also to its subsidiaries and supply chain.
