Service Description

Corporate Sustainability Due Diligence Directive Provisionally agreed upon by the European Council and European Parliament in December 2023, the Corporate Sustainability Due Diligence Directive (CSDDD) aims to enhance the protection of the environment. The directive sets requirements for large companies in relation to the impacts the operations of themselves, subsidiaries, and partners have on both human rights and the environment. Who reports? Large El companies with more than 500 employees and a net worldwide turnover of over €150 million. Non-EU companies with over €150 million turnover generated in the EU within three years of the entry into force of the CSDDD. The European Commission with publish a list of non-EU companies that fall under the scape of the directive. Financial institutions will be excluded from the directive pending a review into possible future inclusion. No date is set yet for compliance, but 2027 has been suggested What is reported? Under the directive, companies must identify, mitigate and prevent negative actual and potential human rights and environmental impacts in their operations, their subsidiaries operations, those of their business partners. This should cover upstream business partners and partially the downstream activities such as distribution or recycling The Directive includes duties for directors, which mandate the implementation of a due diligence process that is integrated into corporate strategy Companies are to develop a transition plan that ensures their business model complies with limiting warming to 1.5C Companies not in compliance could face fines of up to 5% net turnover. Benefits Protection of the environment and human rights Increased transparency . Greater awareness of a companies negative impacts Risk management and resilience.