{"id":30881,"date":"2024-05-08T11:34:03","date_gmt":"2024-05-08T09:34:03","guid":{"rendered":"https:\/\/www.laragon.es\/the-european-union-moves-forward-in-the-process-of-adopting-the-corporate-due-diligence-directive-csddd\/"},"modified":"2024-05-23T20:02:11","modified_gmt":"2024-05-23T18:02:11","slug":"the-european-union-moves-forward-in-the-process-of-adopting-the-corporate-due-diligence-directive-csddd","status":"publish","type":"post","link":"https:\/\/www.laragon.es\/en\/the-european-union-moves-forward-in-the-process-of-adopting-the-corporate-due-diligence-directive-csddd\/","title":{"rendered":"The European Union moves forward in the process of adopting the Corporate Due Diligence Directive (CSDDD)."},"content":{"rendered":"\n

The European Parliament moves towards sustainability with the adoption of the Corporate Sustainability Due Diligence Directive (CSDDD). This new legislation reinforces the continent’s commitment to corporate responsibility and human rights,<\/strong> consolidating its position as a global leader in corporate sustainability.<\/a><\/p>\n\n

The CSDDD sets out a number of obligations and requirements for companies to operate in a responsible manner, taking into account both human rights and the environment. This will affect thousands of businesses inside and outside the European Union.<\/p>\n\n

The Directive establishes obligations such as having a due diligence policy, identifying and mitigating adverse human rights and environmental impacts, establishing grievance procedures and communicating publicly on due diligence… In addition, the adaptation of a climate transition plan in line with the Paris Agreement is required:<\/p>\n\n

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  1. Have a due diligence policy in place.<\/li>\n\n\n\n
  2. Determine actual or potential negative effects on human rights and the environment.<\/li>\n\n\n\n
  3. Prevent and mitigate potential negative effects.<\/li>\n\n\n\n
  4. Establish and maintain a complaints procedure.<\/li>\n\n\n\n
  5. Monitor the effectiveness of the due diligence strategy and measures.<\/li>\n\n\n\n
  6. Communicate publicly on due diligence.<\/li>\n\n\n\n
  7. Adapt a climate transition plan in line with the Paris Agreement and with the objective of limiting global warming to a maximum of 1.5\u00b0C.<\/li>\n<\/ol>\n\n

    This regulation will affect EU companies, third country companies with activities in the EU and, albeit indirectly, small and medium-sized enterprises as part of the supply chain.<\/p>\n\n

    EU Member States in the Council are now being called upon to speed up final approval, clearing the way for the law to enter into force. After its adoption, it will be crucial to transpose and implement the standard effectively and, in the coming years, to work together to close the loopholes that will hinder it from realising its full potential.<\/p>\n\n

    Impact on business and supply chains<\/u><\/strong><\/h2>\n\n

    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:<\/p>\n\n