New E.U. Directive Expands Scope of Due Diligence

An E.U. directive passed in 2024 requires many large companies around the world to address human rights and environmental issues in their operational chains, including subsidiaries and contract partners. The Corporate Sustainability Due Diligence Directive (CSDDD) is to become part of Member States’ laws over the coming two years, with a few countries adapting existing statutes that already cover the same concerns. This article explores the implications of the CSDDD for large business entities that have an E.U. dimension to their work and for compliance professionals. See our two-part series: “Making Sense of Evolving Regulations, Recent Enforcement Efforts and Antitrust Claims as to ESG Investing in the U.S. and E.U. (Part One of Two)” (May 10, 2023), and “How to Navigate the Rough Waters and Turning Tides of U.S. States’ Anti-ESG Movement and Europe’s Pro-ESG Measures (Part Two of Two)” (May 31, 2023).

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