Proposed by the European Commission, the Corporate Sustainability Due Diligence Directive (CSDDD) is an instrumental piece of legislation aimed at compelling both domestic and international companies operating within the European Union to take accountability for their environmental and social impacts, inclusive of those generated by their supply chains.

This Directive will mandate these corporations to identify, mitigate, and prevent both actual and prospective repercussions of their operations on human rights abuses and the environment.

Moreover, the CSDDD will necessitate companies to carry out thorough due diligence throughout their entire value chain. This includes the actions of their subsidiaries and any other entities within their value chain with which they are directly or indirectly engaged in business relationships.