On 24 May 2024, the Council of the European Union (EU) finalised the adoption of the Directive on corporate sustainability due diligence, which the European Commission initially proposed on 23 February 2022.
The Directive mandates that companies identify and mitigate adverse human rights and environmental impacts within their operations and global value chains.
It applies to EU and non-EU companies, including parent companies with a turnover exceeding EUR 450 million.
On 14 December 2023, the Council of the European Union and the European Parliament agreed on a text for the Corporate Sustainability Due Diligence Directive (CSDDD).
It requires formal approval by the Legal Affairs Committee and the European Parliament as a whole, as well as by the Council (EU governments) to enter into force.
It aims to enhance the protection of the environment and human rights in the EU and globally.
The Commission proposal was introduced on 23 February 2022, and the Council adopted its general approach on 1 December 2022.