EU Adopts Corporate Sustainability Directive
May 29, 2024
EU directive mandates corporate responsibility in human rights and environmental protection.
The Council of the European Union has formally adopted the Corporate Sustainability Due Diligence Directive, mandating large companies to address and mitigate adverse impacts on human rights and the environment. This significant step finalises the legislative process.
The directive imposes obligations on companies with over 1,000 employees and a turnover exceeding €450 million. These corporations must implement risk-based systems to monitor, prevent, and remedy human rights abuses and environmental harm throughout their operations and those of their subsidiaries and business partners.
“Large companies must take their responsibilities in the transition towards a greener economy and more social justice. The Corporate Sustainability Due Diligence directive will give us the possibility to sanction those actors that violate their obligations,” stated Pierre-Yves Dermagne, Belgian Deputy Prime Minister and Minister of the Economy and Employment.
Additionally, affected companies must develop climate transition plans aligning with the Paris Agreement. The directive will be enforced gradually over five years, targeting companies based on size and turnover.
With this approval, the directive will soon be signed, published in the Official Journal of the European Union, and enforced just 20 days later. Member states will have a two-year window to ensure compliance with the new regulations, providing ample time for preparation.
Categories : Around the Industry
Tags : Accountability Business Compliance Directive EU Sustainability
