European Parliament approved the Corporate Sustainability Due Diligence Directive (CSDDD or CS3D) | Current Affairs | Vision IAS
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    European Parliament approved the Corporate Sustainability Due Diligence Directive (CSDDD or CS3D)

    Posted 26 Apr 2024

    1 min read

    • CS3D aims to foster sustainable and responsible corporate behaviour and to anchor human rights and environmental considerations in companies’ operations and corporate governance.

     

    • Key Features: 
      • Need to follow Due Diligence: Includes methods through which corporates can account their actual and potential adverse impacts, such as pollution, child labor etc.
        • Companies will also have to adopt a transition plan to make their business model compatible with the Paris Agreement global warming limit of 1.5°C. 
      • Coverage: 
        • EU companies and parent companies with over 1000 employees a worldwide turnover higher than 450 million euro. 
        • Non-EU companies, parent companies and companies with franchising or licensing agreements in the EU reaching the same turnover thresholds in the EU will also be covered.
      • Penalties for violations: It include “naming and shaming” and fines of up to 5% of companies’ net worldwide turnover.

     

    • Concerns Related to CS3D: It poses challenges for companies from developing and underdeveloped countries. They need to invest more resources to comply with the regulation
    • Tags :
    • Corporate Sustainability Due Diligence Directive (CSDDD or CS3D)
    • Corporate Sustainability

    Articles Sources

    https://www.europarl.europa.eu/news/en/press-room/20240419IPR20585/due-diligence-meps-adopt-rules-fo
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