Insights
Corporate Sustainability Due Diligence Directive adopted
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EU requires large businesses to conduct environmental and human rights due diligence across their operations and value chains from 2027 onward.
EU requires large businesses to conduct environmental and human rights due diligence across their operations and value chains from 2027 onward.
Why it matters: the new sustainability legislation will require greater care as to the environmental and social impacts of European companies worldwide, but achieving complicance with an increasing administrative burden by the deadline is likely to be a challenging task.
The duties of businesses subject to the Corporate Sustainability Due Diligence Directive will include obligations to:
conduct due diligence regarding actual or potential
human rights impacts, including forced labor, exploitation of workers, child labor, just and favorable working conditions, fair and adequate living wages, unequal treatment in employment and the right to freedom of association;
environmental impacts, including emissions, deforestation, pollution, handling of hazardous wastes and chemicals, protection of the ozone layer, pollution, use of mercury and water usage;
implement a climate change mitigation transition plan.
Go deeper by learning more about the EU's sustainability regulation or examining the adopted legislation in full.