CSDDD published in the Official Journal of the European Union

After a two-and-half-year legislative journey, the European Union’s (EU) Corporate Sustainability Due Diligence Directive (CSDDD or CS3D) was published in the EU Official Journal on July 5, 2024. Consequently, the Directive will come into force on July 25, 2024, and EU Member States will have until July 26, 2026, to transpose the CSDDD into their national laws. In-scope companies will be required to comply within a staggered timeline ranging from July 2027 to July 2029.

The CSDDD imposes obligations on companies within scope to identify, assess, prevent, mitigate, address, and remedy impacts on people and the planet resulting from their operations, as well as those within parts of their value chains. These impacts range from child labor and slavery to pollution, emissions, deforestation, and ecosystem damage. Obligations under the CSDDD will apply in addition to other more specific, or potentially stricter due diligence obligations under other EU laws such as the Conflict Minerals Regulation, the Batteries Regulation, the Deforestation Regulation, and the forthcoming Forced Labour Regulation.

Importantly, the CSDDD introduces minimum harmonization, meaning Member States cannot lower the level of protection when transposing the CSDDD into national law. Equally, the CSDDD may not serve as grounds for Member States to reduce the level of protection already afforded under national laws to human, employment and social rights, or protection of the environment or climate. Thus, it is expected that existing laws such as Germany’s Act on Corporate Due Diligence Obligations in Supply Chains (Gesetz über die unternehmerischen Sorgfaltspflichten in Lieferketten, LkSG) and France’s Duty of Vigilance Law (loi de vigilance) will be affected by the national implementation of the CSDDD.

The full text of the CSDDD is available here: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32024L1760