On May 24th 2024 the Council has formally adopted the Corporate sustainability due diligence Directive. The adopted directive introduces obligations for large companies regarding adverse impacts of their activities on human rights and environmental protection. It also lays down the liabilities linked to these obligations. The rules concern not only the companies’ operations, but also the activities of their subsidiaries, and those of their business partners along the companies’ chain of activities.
After being signed by the President of the European Parliament and the President of the Council, the directive will be published in the Official Journal of the European Union and will enter into force on the twentieth day following its publication. Member states will have two years to implement the regulations and administrative procedures to comply with this legal text.
The directive will apply depending on the size of the companies following this timeline:
- 3 years from the entry into force of the directive for companies with more than 5 000 employees and €1 500 million turnover;
- 4 years from the entry into force for companies with more than 3 000 employees and €900 million turnover;
- 5 years from the entry into force of the directive for companies with more than 1 000 employees and €450 million turnover.
>> More information about the activities and the scope of CSDDD can be read at https://www.consilium.europa.eu
