Directive (EU) 2024/1760 on corporate sustainability due diligence (CSDDD)

Overview

The Corporate Sustainability Due Diligence Directive (CSDDD) introduces mandatory human rights and environmental due diligence obligations for large companies operating in the EU. Companies must identify, prevent, mitigate, and bring to an end adverse impacts in their own operations, subsidiaries, and value chains. The directive requires adoption of a climate transition plan aligned with the Paris Agreement, stakeholder engagement, and establishment of a complaints procedure. Supervisory authorities can impose fines of up to 5% of global turnover for non-compliance, and affected persons can claim damages for breach of duty. The directive applies progressively from 2027 for the largest companies.

This eu directive (32024L1760) is part of the EU’s legal framework governing corporate sustainability. EU corporate sustainability law establishes due diligence obligations for companies to identify, prevent, and mitigate adverse impacts on human rights and the environment.

Type: EU Directive

CELEX Number: 32024L1760

Date of Effect: See the official publication in the Official Journal of the European Union.

Key Provisions

Directive (EU) 2024/1760 on corporate sustainability due diligence (CSDDD) establishes the core legal framework in this field. For specific provisions, articles, and implementing measures, consult the full text on EUR-Lex.

Significance

This legislation represents a key component of EU law in the area of corporate sustainability. It reflects the EU’s approach to harmonization and regulatory policy within the internal market framework.