Approved Sustainability Due Diligence Directive


The Corporate Sustainability Due Diligence Directive (CSDDD) has been formally approved by the EU parliament. The directive mandates that EU firms adopt best practices for climate change mitigation and climate neutrality.

Companies will need to create and implement transition plans with timelines aligning with the Paris Climate Agreement, especially targeting the temperature limit of 1.5°C. The plans should include targets until 2050 supported by “conclusive scientific” evidence, in addition to concrete goals aimed at decreasing greenhouse gas (GHG) emissions, covering direct emissions (Scope 1), indirect emissions from purchased energy (Scope 2), and end-use emissions (Scope 3). The directive applies to EU companies with over 1,000 employees and a turnover exceeding €450mn ($481mn).