After weeks of intense negotiation and uncertainty, the Corporate Sustainability Due Diligence Directive has finally been approved, marking a significant step towards enhancing corporate responsibility and sustainability practices across the EU.

While the final text is not yet publicly available, we’re thrilled to share some key highlights from the latest developments:

📈 Threshold Adjustment: To ensure that smaller companies aren’t immediately overwhelmed, the threshold for application has been raised. Originally applicable to EU companies with 500 employees and a global turnover of over €150 million, it’s now set at 1000 employees and €300 million turnover.

🌱 Climate Transition Plans: Mandated climate transition plans remain a crucial aspect, underscoring the directive’s commitment to addressing climate change and promoting sustainable business practices.

⚖️ Civil Liability Flexibility: Amendments have been made to provide Member States with greater flexibility concerning civil liability, allowing for more tailored approaches to enforcement.

🔄 Transitional Periods: New transitional periods have been introduced to facilitate smoother adaptation. Companies with over 5000 employees and €1500 million turnover will have a 3-year application period, those with over 3000 employees and €900 million turnover will have 4 years, while smaller companies will have a 5-year period.

Next Steps: The current text awaits approval by the EU Parliament in its final plenary session scheduled for April. This pivotal moment underscores the EU’s commitment to fostering sustainable practices and corporate accountability.

Stay tuned for further updates as we continue to progress towards a more sustainable future together!