Proposal for a european directive on corporate sustainability due diligence: towards a strengthening of the legal regime for corporate social and environmental behaviour

Newsletter Corporate – January 2024 – Corporate Sustainability Due Diligence

A European corporate sustainability due diligence was agreed upon on December 14th, 2023. As part of the European trilogue initiated in September 2023, the European Parliament and the Council have reached a provisional agreement after a night of negotiations on the proposed EU directive on corporate sustainability due diligence.

This proposal, mainly inspired by the French Duty of Vigilance Act adopted on March 27, 2017, aims to mandate large companies within the EU to identify and prevent negative social and environmental impacts arising from their activities across their entire value chain.

The current draft proposed by the European institutions defines the scope of the companies that will be concerned, specifies the rules governing their obligations, and clarifies the sanctions and conditions of civil liability for companies that fail in their duty of care.

The compromise text already introduces the challenge for in-scope companies to integrate corporate sustainability due diligence into their business strategy

Overview : 

1. The scope of the EU’S corporate sustainability due diligence directive
1.1 . Harmonization on a European scale
1.2. Scope of application
1.3 . Purpose of the European mechanism

2. The content of the Eu legal framework
2.1. Companies’ duties
2.2. The implementation of the corporate sustainability due diligence
2.3. Sanctions

To read or download the Newsletter clic here : Newsletter Corporate – January 2024 – Corporate Sustainability Due Diligence