EU: CSDDD published in the Official Journal

The Corporate Sustainability Due Diligence Directive (CSDDD or CS3D) was published in the Official Journal of the EU on 5 July 2024 – see here. 

Scope and application

It will come into force on 25 July 2024. Member states will have until 26 July 2026 to transpose the CSDDD into their national laws. The CSDDD will apply on a phased basis for in-scope companies as follows: 

Summary of requirements

Under the new rules, in-scope companies will be subject to far-reaching obligations to establish and implement processes to identify and take action in relation to the adverse human rights and environmental impacts of their operations, as well as those in parts of their value chains. The regime can apply outside the EU, both in terms of the companies it brings into scope, the diligence that needs to be undertaken worldwide, and the indirect effects the new rules will have as they are cascaded up and down value chains. 

In addition, for the first time, in-scope companies must adopt and implement climate transition plans and set climate targets in line with the Paris Agreement in a bid to set the course for a move to a lower carbon economy. 

To ensure compliance with its provisions, the CSDDD relies on public and private enforcement.

For more information on the CSDDD, explore our related content:

• Watch our webinar: Deal on the EU CSDDD 
• Read our FAQs on the upcoming EU Corporate Sustainability Due Diligence Directive 
• View our flyer on managing supply chain risks: reporting and diligence 
• Watch our video on human rights due diligence: prioritisation and where to start 
• See our Business & Human Rights webpage 
• Read our BHR blog posts