The Council and the European Parliament today reached a provisional agreement on the Corporate Sustainability Due Diligence Directive (CSDDD), which aims to strengthen the protection of the environment and human rights in the EU and worldwide. The Due Diligence Directive will establish obligations for large companies regarding actual and potential adverse impacts on human rights and the environment, with regard to their own activities, the activities of their subsidiaries and the activities carried out by their business partners.

Obligations for companies

The Due Diligence Directive sets out rules for the obligations of large companies regarding actual and potential adverse environmental and human rights impacts for their business chain of activities, which applies to the company's supply business partners and partly to downstream activities such as distribution or recycling.

The directive also sets out rules on sanctions and civil liability for breaches of these obligations; it requires companies to adopt a plan to ensure that their business model and strategy are in line with the Paris Agreement on climate change.