Deal on the Corporate Sustainability Due Diligence Directive

On 15 March 2024, the Council of the European Union finalized a deal on the corporate sustainability due diligence directive, which addresses companies' obligations regarding human rights and environmental impacts across their operations and business chains. The directive, approved by the Permanent Representative Committee and the European Parliament's Legal Affairs Committee, will be voted on by the European Parliament on 24 April 2024. It mandates that companies integrate due diligence into policies, monitor compliance, and report publicly. It applies to large companies and those with significant turnover in the EU, including third-country entities. The directive establishes supervisory authorities, specifies penalties, and outlines civil liability for non-compliance. Member States must implement the directive within two years, with compliance deadlines varying by company size and origin.