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EU: Parliament gives final approval for CSDDD

Final vote in the European Parliament 

On 24 April 2024, the European Parliament formally adopted the Corporate Sustainability Due Diligence Directive (CSDDD or CS3D) - see EP press release.  

The Parliament did not make any further changes to the text of the Directive so what has been formally adopted today is the same text that the Council endorsed on 15 March which included some significant concessions, especially on the scope of application (see FAQs on the upcoming Corporate Sustainability Due Diligence Directive: what has changed?).

Next steps 

The CSDDD is finally on its way to the finish line. Getting to this stage has not been easy, involving difficult negotiations between the Council and Parliament. 

The Directive now needs to be formally endorsed by the Council and published in the EU Official Journal. It will enter into force twenty days later. Member states will then have two years to transpose the new rules into their national laws. Transition periods will apply based on a staged approach, with actual entry into application of the CSDDD rules mid-2027 for the largest in-scope companies.

For large companies operating in the EU and their business partners, this is a pivotal turning point as the CSDDD supplements the duty to disclose sustainability-related information with a duty to act to foster sustainability and climate transition. The new rules impose far-reaching due diligence obligations on large companies operating in the EU and introduce an obligation for these companies to adopt and implement climate transition plans. The CSDDD also provides strict enforcement mechanisms to ensure compliance with its requirements.  

For more information on what changes have been made to the thresholds, whether and how the CSDDD applies to the financial sector, what it requires in respect of transition plans, and much more - see our CSDDD FAQs.

Webinar on 7 May 

We will be holding a webinar on 7 May 2024 to discuss what the outcome of the Parliament’s vote means, the key changes made to the CSDDD and its implications for businesses, as well as lessons learned from supply chain due diligence regimes in Germany and France. Click here to register. 

If you would like to discuss any aspect of the new regime and what this means for your organisation, please reach out to any of the key contacts on this blog post or your usual Linklaters contacts. 


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