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The Proposal For Corporate Sustainability Due Diligence Directive presented on this page is a versatile legal template crafted by expert attorneys in accordance with federal and state laws.
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The current proposals for CSDDD set out a comprehensive framework of corporate due diligence for companies to identify actual or potential risks to human rights and the environment and to establish processes to mitigate these risks.
The purpose of the Directive is to improve the regulatory framework on human rights and sustainability due diligence, which will aid in the EU's transition to a climate-neutral and green economy.
Overall, the CSRD aims to hold companies more accountable for their environmental and social impacts and to accelerate the E.U.'s transition to a fully sustainable and inclusive economic and financial system. While the CSRD is a European directive, the CSRD requirements also apply to many non-E.U. companies.
On 1 June 2023, the European Parliament has agreed on its position on the Directive on corporate sustainability due diligence (the CSDDD). The CSDDD requires in-scope companies to conduct due diligence on, and take responsibility for, human rights abuses and environmental harm throughout their global value chains.
What is the CSDDD? If adopted, the CSDDD would introduce requirements for companies to identify and prevent, bring to an end, or mitigate the actual and potential impacts of their activities on the environment and on human rights abuses.