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Corporate Sustainability Due Diligence Directive - CSDDD to be Finalized in 2024

Due Diligence: An ongoing, proactive, and reactive process through which companies put in place systems and processes to make sure they can identify, manage, and report on risks in their supply chain. 


The Council and the European Parliament have reached a provisional deal on the corporate sustainability due diligence directive (CSDDD), which aims to enhance the protection of the environment and human rights in the EU and globally.


The due diligence directive will set obligations for large companies regarding actual and potential adverse impacts on human rights and the environment, concerning their operations, those of their subsidiaries, and those carried out by their business partners.


For companies that fail to pay fines imposed on them in the event of a violation of the directive, the provisional agreement includes several injunction measures and takes into consideration the turnover of the company to impose pecuniary penalties (i.e. a minimum maximum of 5% of the company’s net turnover).







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The contents of this research note are for informational purposes only. The data contained herein is based entirely upon the available information provided in public disclosures. The contained information has been verified to the best of GC Insights and its research affiliate’s ability, but neither can accept responsibility for loss arising from the decisions based upon this research note. The information distributed in this research note does not constitute investment advice solicitation or counsel for investment in any fund or product mentioned thereof. The information distributed in this research note does not constitute or form part of, and should not be construed as, any offer for sale or subscription of any fund or product included herein. GC Insights and its research affiliate expressly disclaim any responsibility for any consequential loss or damage of any kind whatsoever resulting, directly or indirectly, from (a) the use of the Product, (b) reliance on any information contained herein, (c) any error, inaccuracy or omission in any such information or (d) any action resulting therefrom. 


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