Update | The enforcement of the Corporate Sustainability Due Diligence Directive (CSDDD): what are the new scenarios abo...
During 2024, the EU Corporate Sustainability Due Diligence Directive (CSDDD) is scheduled to come into force: it means that, by law, many companies will be required to look at their supply chain through the lens of ESG factors.
How to prepare for this? A group of RPLT professionals has prepared a Focus to explain it: it discusses, among other things, the new liability of directors in the ESG domain.
In practical terms, with the entry into force of the CSDDD, European companies-and companies headquartered in non-EU states but operating within the European Union-will need, in accordance with the CSDDD transposition provisions adopted by their home jurisdictions:
- to adopt a series of controls and safeguards to ensure that operators along the supply chain are carrying out their activities in a sustainable manner and to identify potential areas of risk of unsustainable conduct;
- to fulfill reporting and communication obligations to stakeholders in relation to the impact of its value chain.
The CSDDD ultimately requires companies to put in place the necessary initiatives to reduce gas emissions from their operations in line with the goals of the Paris Accords.
Table of Contents of the Focus:
- The CSDD and its contents
- The provisional agreement between European Parliament, Council and Commission
- The role of directors in light of the provisions of the CSDDD
- The liability of directors in the ESG context