The Corporate Sustainability Due Diligence Directive: Scope and Company Obligations

Overview

Directive (EU) 2024/1760 on corporate sustainability due diligence (the “CSDDD”) was published in the Official Journal of the European Union on 5 July 2024 and entered into force on 25 July 2024.

The CSDDD sets out rules: 
(i) for companies regarding actual and potential human rights adverse impacts and environmental adverse impacts, with respect to their own operations, the operations of their subsidiaries, and those of their business partners in their value chains; 
(ii) on corporate liability for violations of those obligations; and 
(iii) on companies’ obligation to adopt and put into effect a transition plan for climate change mitigation in line with the Paris Agreement.

This article reviews the background to, scope of, and obligations arising under the CSDDD.

Link to the PDF article here.

This article was first published by Thomson Reuters (Professional) Ireland Limited in (2024) 31(6) Commercial Law Practitioner 71 and is reproduced by agreement with the Publishers.