EU Approves Landmark Corporate Sustainability Directive
New law mandates due diligence on human rights and environmental impacts for large companies operating in the EU.
- The Corporate Sustainability Due Diligence Directive (CSDDD) requires companies to address human rights and environmental risks within their operations and supply chains.
- The directive applies to EU-based companies with over 1,000 employees and non-EU companies with significant business in the EU.
- Member states have two years to incorporate the directive into national law, with phased implementation starting in 2027.
- The legislation aims to provide greater access to judicial redress for victims of corporate abuses.
- Despite opposition, the directive is seen as a significant victory for human rights advocates and environmental groups.