Directive on Corporate Sustainability Due Diligence (CSDD)

Last updated: 7 December 2023

This proposal amends Directive (EU) 2019/1937 with the aim of fostering sustainable and responsible corporate behaviour throughout global value chains. Under the proposal, companies will be required to identify and, where necessary, prevent, end or mitigate adverse impacts of their activities on human rights (e.g. child labour and exploitation of workers) and on the environment (e.g. pollution and biodiversity loss). The proposal applies to a company's own operations, as well as to their subsidiaries and their value chains (direct and indirect established business relationships). In order to comply with the corporate due diligence duty, companies must: 

  • integrate due diligence into policies; 
  • identify actual or potential adverse human rights and environmental impacts; 
  • prevent or mitigate potential impacts; 
  • bring to an end or minimise actual impacts; 
  • establish and maintain a complaints procedure; 
  • monitor the effectiveness of the due diligence policy and measures;
  • publicly communicate on due diligence.

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