On 24 April 2024, the European Parliament (Parliament) formally adopted the final text of the Corporate Sustainability Due Diligence Directive (CSDDD) in its first reading. This marks the end of the key legislative process regarding the ground-breaking CDDD after four years.

Adoption of CSDDD

Parliament made no further changes to the text of the CSDDD, so the adopted text is the same text proposed by the Council of the European Union (Council) in March 2024, significantly limiting the scope of companies and extending compliance.

The directive must now be formally approved by the Council and published in the Official Journal of the European Union (EU). It will enter into force 20 days later.

Once the CSDDD enters into force, EU member states have a two-year time frame to transpose the CSDDD into national law. The transition periods will then be applied gradually, with the actual application of CSDDD obligations starting in 2027 for the largest companies in the scope.Neil Robson, Ciara McBrien, Sara Portillo, more at lexology.com)