Legal Analysis: Corporate Environmental Due Diligence and Reporting in the EU
PDF | 1968 kb
PDF | 1968 kb
The Corporate Sustainability Due Diligence Directive (CS3D) sets a legal requirement, for certain very large companies, to identify and address the human rights and environmental impacts related to the companies’ activities, including those in their value chains. The CS3D also requires those companies to adopt and implement a transition plan to make their business models and strategies compatible with international and European climate objectives.
The adoption of the CS3D at the EU level, published in July 2024, is a first step in a longer process. As a Directive, the CS3D does not directly apply to companies, but must be transposed within two years into the domestic legal systems of EU Member States, which retain some flexibility regarding the way the Directive’s requirements are incorporated into their national legal systems.
This guide primarily serves to support those actors involved in transposition (in particular public authorities) by providing in-depth analysis of the provisions related to the environment and recommendations on how to transpose the CS3D to ensure a high level of protection of the environment – including by capitalising on synergies with CSRD and maximising alignment to international standards.