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will each designate an authority to supervise and enforce the directive, including fines and compliance orders. The
European Union will set up a European Network of Supervisory Authorities that will bring together representatives of the member states to ensure a coordinated approach. Member states
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Initially, the legal implementation of the directive failed in a vote in the
Council on 28 February 2024, as the required majority of at least 15 EU member states, which together represent at least 65% of the EU population, was not achieved. The Belgian
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then announced that it would examine whether the concerns of the Member States could be allayed in consultation with the
European Parliament. After further negotiations, the EU member states agreed on a substantially weakened version of the
219:≥ 250 employees and net ≥ EUR 40 million turnover worldwide, and operating in defined high impact sectors, e.g. textiles, agriculture, extraction of minerals. For this group, the rules start to apply two years later than for group 1.
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Directive (EU) 2024/1760 of the
European Parliament and of the Council of 13 June 2024 on corporate sustainability due diligence and amending Directive (EU) 2019/1937 and Regulation (EU) 2023/2859
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Non-EU companies: ≈ 2,600 companies in Group 1 and ≈ 1,400 in Group 2. Third-country companies active in the EU with turnover threshold aligned with Groups 1 and 2, generated in the EU.
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On 24 May 2024, the
Council of the EU adopted the directive. It will be incorporated into domestic laws within two years by all European Union member states.
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are not concerned by the proposed rules. However, the proposal provides supporting measures for SMEs, which could be indirectly affected.
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will apply to a company’s “chain of activities", as well as operations across the company’s subsidiaries both inside and outside of
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381:"EU's Proposed Directive on Corporate Sustainability Due Diligence: What US companies need to know | DLA Piper"
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The rules of directors' duties are enforced through existing Member States' laws. The rules on
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will ensure that victims get compensation for damages resulting from the failure to comply.
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Please help update this article to reflect recent events or newly available information.
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447:"ESG Watch: New European human rights rules leave companies with 'big gap to close'"
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on March 15, 2024, which now received a qualified majority. Germany, which has the
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adopted the CSDDD as a draft that would be negotiated for the rest of the year.
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as well as establishing processes and standards to diminish these risks. The
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and environmental impacts in the company's own operations and across their
406:"Corporate sustainability due diligence: Council gives its final approval"
581:"Lieferkettenrichtlinie: EU-Staaten einigen sich auf Lieferkettengesetz"
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adopted its own approach to the written proposal. On 1 June 2023, the
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554:"Kommentar zum EU-Lieferkettengesetz: Es geht auch ohne Deutschland"
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due diligence will be enforced through administrative supervision.
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for companies to identify actual or potential risks and harm to
506:"EU-Lieferkettengesetz fällt politischer Kehrtwende zum Opfer"
480:"Corporate sustainability due diligence - European Commission"
428:"Corporate sustainability due diligence - European Commission"
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213:≥ 500 employees and net ≥ EUR 150 million turnover worldwide.
608:"EU approves watered-down human rights and supply chain law"
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due diligence, which will aid in the EU’s transition to a
527:"Lieferkettengesetz verfehlt Mehrheit unter EU-Ländern"
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237:Group 2: ≈ 3,400 companies in high-impact sectors.
174:. The purpose of the directive is to improve the
636:Corporate Sustainability Due Diligence Directive
120:Corporate Sustainability Due Diligence Directive
317:on 23 February 2022. On 1 December 2022, the
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206:Companies are categorized into two groups:
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190:. Additionally, CSDDD will establish
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579:Tschirner, Ulrike (15 March 2024).
194:across different directives in the
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154:CSDDD establishes a framework of
134:for companies to prevent adverse
606:Niranjan, Ajit (15 March 2024).
408:. Council of the EU. 24 May 2024
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351:the German coalition government
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533:(in German). 28 February 2024
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486:. 23 February 2022
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288:. You can help by
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257:Enforcement
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130:to require
645:Categories
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360:References
176:regulatory
150:Provisions
65:Text with
336:directive
227:Large EU
168:directive
124:directive
102:reference
69:relevance
41:July 2024
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297:May 2023
162:and the
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309:History
216:Group 2
210:Group 1
144:in 2024
100:Journal
91:Made by
31:updated
172:Europe
83:Title
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