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:
By the end of July, the European Commission is expected to adopt its first set of sustainability reporting standards (ESRS). The standards will impact 50,000 European companies and thousands international corporate groups. As part of the EU Corporate Sustainability Directive (CSRD) ecosystem, they will require large companies to report information on their sustainability impacts on people and planet as well as their sustainability-related risks and opportunities.
Last Friday, the European Commission published for public consultation a draft Delegated Act on the first set of European Sustainability Reporting Standards. NGOs, civil society groups and investors associations are very concerned with the significant reduction of the ambition compared to EFRAG’s technical advice and urge the Commission to introduce a robust, mandatory and consistent reporting framework and to not allow greenwashing.
The Committee on Legal Affairs of the European Parliament adopts improvements on the Corporate Sustainability Due Diligence Directive.
