Introduced in 2022, the CSDDD is a proposed legislative framework that aims to establish a mandatory due diligence requirement for companies operating within the European Union. This directive is intended to address and mitigate adverse impacts on human rights and the environment resulting from business activities. The duty will apply to a company’s operations, its subsidiaries, and its value chains inside and outside Europe.In addition, certain large companies need to have a plan to ensure that their business strategy is compatible with limiting global warming to 1.5 °C in line with the Paris Agreement. Directors are incentivized to contribute to sustainability and climate change mitigation goals.

EUR-Lex – 52022PC0071 – EN – EUR-Lex (europa.eu)