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Directive on Corporate Sustainable Due Diligence

The aim of this Directive is to promote sustainable and responsible corporate action and to anchor human rights and environmental aspects in the business activities and corporate governance of companies.

What do I need to know?

On February 23, 2022, the Commission adopted a proposal for a Directive on corporate sustainability due diligence. The corporate sustainable due diligence Directive outlines the due diligence obligations of companies in the EU. In essence, the directive describes that it is the duty of every company to work towards a more sustainable future by identifying, mitigating, ending and addressing negative impacts of its own operations and throughout the value chain.

The directive also sets standards for corporate directors and how, at a minimum, they must incorporate and implement due diligence into corporate strategy. It describes how, when acting in the best interest of the company, a director must consider ESG impacts

Is it relevant for me?

The directive is primarily addressing larger corporations of first +500 employees, net +150 M € turnover and later +250 employees, net +40 M € turnover.

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