Biodiversity Conservation under Nature Restoration Law: The Empowering Role of the EU Corporate Sustainability Due Diligence Directive

The European Union’s Nature Restoration Law (NRL) and Corporate Sustainability Due Diligence Directive (CSDDD) at the time of writing represent significant legislative advancements in addressing biodiversity loss and corporate responsibility. This research explores the synergistic relationship between these two instruments, focusing on how the CSDDD can amplify and disseminate the biodiversity conservation objectives of the NRL among European companies. The NRL, proposed in June 2022 and finally adopted in June 2024, aims to restore degraded ecosystems across the EU, setting legally binding targets for Member States to implement restoration measures. Concurrently, the CSDDD, introduced in February 2022 and adopted in May 2024, mandates large companies to identify, prevent, and mitigate adverse impacts on human rights and the environment throughout their value chains (Directive (EU), 2024/1760). While the NRL primarily addresses governmental actions, the CSDDD extends the sphere of influence to the private sector, creating a powerful mechanism for integrating biodiversity conservation into corporate strategies. This integration is crucial, as business activities significantly impact biodiversity, often beyond national borders. The CSDDD’s due diligence requirements compel companies to assess their operations’ impact on biodiversity, aligning with the NRL’s objectives. This alignment can manifest in various ways. The CSDDD necessitates companies to develop a comprehensive understanding of their biodiversity impacts, potentially leading to increased support for NRL initiatives. Companies must examine their entire value chains, potentially uncovering and addressing biodiversity impacts in regions within and outside of the EU. The CSDDD’s emphasis on stakeholder consultation can facilitate collaboration between businesses, governments, and communities in implementing strategies fostering biodiversity protection. The dual pressure from the NRL and CSDDD may spur companies to develop nature-positive business models and technologies. Furthermore, the CSDDD’s disclosure requirements can provide valuable data for monitoring progress towards the NRL targets. However, challenges remain in harmonizing these legislative instruments. The complexity of biodiversity assessment, potential conflicts between economic interests and conservation goals, and the need for standardized metrics pose significant hurdles. In conclusion, the CSDDD has the potential to significantly enhance the reach and impact of the NRL by embedding biodiversity conservation within corporate decision-making processes. This synergy between environmental legislation and corporate governance represents a promising approach to addressing the global biodiversity crisis.