European Parliament: agreement on CSDDD

European Parliament: agreement on CSDDD

European Parliament: agreement on CSDDD 2560 1703 ECIIA

The European Parliament’s (EP) Legal Affairs (JURI) Committee adopted its final position on the Corporate Sustainability Due Diligence Directive (CSDDD) on 25 April 2023.

The key points in JURI’s position: 

  • scope captures more companies than the initial proposal of the European Commission (EC), lowering the threshold to 250 employees and a worldwide turnover of over €40 million 
  • ‘value chain’ definition covers all upstream and downstream activities, including the marketing of products 
  • directors shall put in place and oversee the due diligence actions  
  • the inclusion of the financial sector is subject to further restrictions 
  • risk prioritisation of adverse impacts is added as a new provision 

As a next step, the European Parliament is expected to vote on its mandate on 1 June. The negotiations with the Council will follow.

On April 24 2024, the European Parliament approved the Corporate Sustainability Due Diligence Directive, moving it one step closer to formal adoption by the European Union. The CSDDD creates a legal liability for companies relating to environmental and human rights violations within their supply chain. To reach an agreement, the final CSDDD was significantly watered-down from the initial proposal. Member States will be able to start transposing the Directive into national laws in 2024.

Read our Factsheets on CSDDD.

Our website uses cookies, mainly from 3rd party services. Please read our Privacy & Cookies Policy to learn more.