What can be expected from CSDDD no. 2 EU

In addition to publicly enforcing their due diligence and reporting obligations, EU and non-EU companies may face significant liability risks within its jurisdiction. The central provision introducing the civil liability framework is Article 29, which goes beyond existing Member States' supply chain legislation, such as the German Supply Chain Act, which lacks provisions on civil liability.

Companies can be held liable for damages caused to a natural or legal person if they fail to comply CSDDD's due diligence obligations in order to prevent adverse effects or to end them (Articles 10, 11). These due diligence obligations do not only apply to the operation of the company and its subsidiaries, but also to business partners in the chain. However, unlike the proposal of the European Parliament, liability does not apply to all obligations under the CSDDD. In particular, the Directive itself does not establish any liability linked to the obligations of the company under the Climate Plan under Article 22. (Moritz Becker, Mijke Sinninghe Damsté, Ján Henning Buschfeld, more at lexology.com)