EU: Corporate sustainability due diligence – consultation on guidelines 

 

The EU Commission is currently conducting a public consultation on guidelines for the Corporate sustainability due diligence directive 2024/1760 (CSDDD). 

The Directive targets very large EU companies as well as non-EU companies with significant business in the EU. It requires them to identify, prevent and bring to an end actual and potential adverse impacts on human rights and the environment in their own operations, those of their subsidiaries and in their value chains. 

The consultation aims to support the development of guidelines for the effective implementation of the Corporate Sustainability Due Diligence Directive (CSDDD). The European Commission will prepare guidance to assist companies in fulfilling their due diligence obligations, support Member State authorities in implementing and enforcing the Directive, and help stakeholders understand and exercise their rights. The guidance will also be relevant for companies and other stakeholders outside the EU that are part of the value chains of companies subject to the Directive. 

Among the questions asked there are e.g.: 

• Considering the experience in your company with integrating (or your plans to integrate) due diligence into the relevant corporate governance policies, which policies do you consider most relevant? 

• Do you think that the guidelines should seek to offer examples on adverse human rights (including labour rights) or environmental impact, and which are the most relevant types of impacts for which you see this need? 

• If you already apply corporate sustainability due diligence in your value chain, do you have a defined set of indicators to identify and monitor the adverse impacts listed in the Annex? If so, were they developed in-house or do they rely on external input? 

• In your experience, what tools proved particularly helpful to carry out a scoping of risk areas across your company’s activities, those of your subsidiaries and those of your business partners? What approaches or solutions could help in performing these requirements in the cost-effective way? 

• Have you faced any legal obstacles or conflicts when collecting information for the purpose of either carrying out a scoping of risk areas, or an “in-depth assessment” as a result of third countries’ laws? Companies and stakeholders are invited to signal barriers to due diligence they may face in third countries when conducting due diligence. 

Etc. 

The full consultation is available under the link: https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/14445-Corporate-sustainability-due-diligence-development-of-guidelines/public-consultation_en