Corporate Environmental Due Diligence and Reporting in the EU. Legal analysis of the EU Directive on Corporate Sustainability Due Diligence and policy recommendations for transposition into national law

Detalles

The Sustainability Corporate Due Diligence Directive (CS3D) sets out a legal requirement for certain very large companies to identify and address human rights and environmental impacts related to their activities, including those in their value chains. CS3D also requires these companies to adopt and implement a transition plan to make their business models and strategies compatible with international and European climate goals.

The adoption of CS3D at EU level, published in July 2024, is just the first step in a much longer process. The CS3D, as a Directive, does not apply directly to companies, but must be incorporated ("transposed") into the national legal systems of EU Member States within two years. States are bound by the terms of the Directive in terms of the result to be achieved and the deadline for transposition, but they maintain a certain degree of flexibility on how to integrate the requirements of the Directive into their national legal systems.

The main objective of this guide is to support the actors involved in the transposition of the Directive, especially public authorities, by providing an in-depth analysis of environmental provisions and recommendations on how to transpose CS3D to ensure a high level of environmental protection. This, also taking advantage of synergies with the CSRD and maximizing alignment with international standards.