ClientEarth and Frank Bold bring you their ultimate legal CS3D analysis. It unpacks every single environmental element of the directive and can be used by national governments to unlock its potential in the next two years.
The recently adopted Corporate Sustainability Due Diligence Directive (CS3D) is the first cross-sectoral legislation requiring large companies operating in the EU market to identify, prevent, and address adverse impacts on human rights and the environment. This includes impacts throughout their own operations, those of their subsidiaries, and their business partners in their value chains. Companies must also implement a climate change mitigation transition plan to align their business model and strategy with the transition to a sustainable economy and the goal of limiting global warming to 1.5°C.
Furthermore, companies must externally communicate relevant information about their due diligence policies, processes, and activities, including findings and outcomes. For most companies subject to the CS3D, this reporting obligation is addressed by the Corporate Sustainability Reporting Directive (CSRD), which amended the Accounting Directive to require the disclosure of sustainability information.
This guide aims at encouraging ambitious and robust transposition, implementation and enforcement of the CS3D by:
On September 24, we will hold a webinar presenting the key findings and recommendations of the analysis, specifically on the environmental scope of the CS3D as well as climate transition plans.
We will also bring together sustainability experts and business to discuss the potential challenges ahead and the best practices linked to the implementation of Environmental Due Diligence.
Look forward to hearing from:
Investors, asset managers and civil society organisations call for the prompt implementation of the reform on corporate sustainability reporting and EU standards
Frank Bold together with other leading NGOs working on corporate sustainability and sustainable finance raised strong concerns about the delay in the publication of the Sustainable Corporate Governance initiative, as well as the lack of information explaining such new delay.
Due diligence is a precondition for the sustainable activities as defined by the EU Taxonomy and green financing under the Sustainable Finance Disclosure Regulation, including green bonds. Particular ESG due diligence requirements will be regulated by the forthcoming Sustainable Corporate Governance Directive. To help companies better understand its scope and to clarify its requirements, Frank Bold is hosting a webinar. It will feature international experts from companies such as Ericsson and outdoor clothing manufacturer Vaude. We invite you to join us on 26 January at 10 am CET.
