The EU Council has just announced the adoption of the Directive on corporate sustainability due diligence.
Member States’ approval is the latest step in adopting legislation to oblige large companies to address their negative impacts on human rights and the environment throughout their value chain, with respect to:
– its own operations
– those of its subsidiaries
– those carried out by its partners
After an eventful last few months, this vote completes the adoption of this groundbreaking law – arguably the most important policy development in our space since the adoption of the UN Guiding Principles.
The next step is publication in the EU Official Journal in the coming weeks, followed by a two-year deadline for national implementation.
It is estimated that more than 5,000 companies will be affected by this new regulation. In the EU, large companies with more than 1,000 employees and more than 450 million annual turnover will be the first to have to comply with the CSDDD requirements, with gradual implementation extending to 2029:
- 2027: companies with 5,000 employees and 1.5 billion euros
- 2028: companies with 3,000 employees and 900 million euros.
- 2029: companies with 1,000 employees and 450 million euros.
All information regarding the approval process has been described in this previous Laragon news item.
With Laragon’s technology we help companies maintain high standards of corporate responsibility and thus avoid any risk of CSDDD-related sanctions.
