The nature of the CSDDD
The Corporate Sustainability Due Diligence Directive (CSDDD) was formally adopted by the EU Council on 24 May 2024. The directive targets EU and non-EU companies with a turnover of at least EUR 450 million and over 1,000 employees. However, as the directive fosters sustainable and responsible corporate behaviour throughout global value chains, all companies will be at least indirectly impacted.
CS3D covers both human rights and environmental impact, mandating companies to identify, prevent, mitigate, and remediate adverse environmental, social, and governance (ESG) impacts across their operations and value chains. This directive transforms international standards on responsible business conduct from non-binding guidelines to enforceable legal obligations, introducing a requirement for enterprises to carry out risk-based due diligence.
Additionally, companies impacted by CSDDD will be required to adopt a plan to ensure their business model aligns with the Paris Agreement carbon-neutrality targets by adopting Transition Plans for climate change mitigation.
The directive also provides for significant penalties in case of non-compliance and mandates EU Member States to update their civil liability rules to facilitate access to justice for those affected by adverse human rights and environmental impacts.
PwC Webinar series:
At PwC Belgium, we are organising a series of webinars to tackle the most urgent questions regarding CSDDD implementation and the action plan to be taken by companies. Read on for more details on the upcoming sessions.
Part 1: Legal Framework, Main Obligations, and Liabilities -
The first webinar will explore the CSDDD legal framework. Our team will present the CSDDD main obligations, administrative penalties, and its interaction with the Corporate Sustainability Reporting Directive (CSRD). Our specialists will then analyse the implications in terms of civil liability, and the contractual framework with business partners.
Agenda:
| 1. The CS3D in the context of EU Green Deal | 4. Climate transition plans |
| 2. Scope and Timeline | 5. Civil & Director Liability |
| 3. Due Diligence Obligations | 6. Contract Framework |
Register now for the
CSDDD Essentials webinar - Part 1
Part 2: Operationalising CSDDD
The second webinar will focus on understanding the practical implications of implementing a CSDDD compliance framework within your company.
Registrations not open yet.
