In light of the severity and the short timeframe that remains to take action to limit global warming to 1.5 degrees, it is important that the EU Corporate Sustainability Due Diligence Directive (CSDDD) leaves no legal ambiguity concerning corporate obligations regarding climate change.
In light of the severity and the short timeframe that remains to take action to limit global warming to 1.5 degrees, it is important that the EU Corporate Sustainability Due Diligence Directive (CSDDD) leaves no legal ambiguity concerning corporate obligations regarding climate change. The aim of this paper is to provide recommendations on Article 15 "Combating climate change" of the Commission’s proposal which lacks precision regarding the targets and content of the transition plans it refers to. The Corporate Sustainability Reporting Directive (CSRD) already provides a baseline for coherence. CSDDD should not fall behind that baseline, in order for both legislations to support the effectiveness of one another.
These recommendations on Article 15 need to be accompanied by changes to Article 3 of the proposed CSDDD, that would ensure a comprehensive approach to the definition of environmental adverse impacts. The definition should not only capture the effect that companies have on all three - the environment, climate and human rights - but also how these are interdependent and what damage prevention entails.
EFRAG’s public consultation on the ESRS 40a (reporting standard for non-EU companies) marks a crucial moment for those working on corporate sustainability and accountability to send a clear signal to the EU on what direction to take. What is at stake is nothing less than Europe's international standing and authority, derived in part from its vision of a world where respect for human rights and the planet is a non-negotiable.
Read our just-released up-to-date briefing covering key EU sustainability law, including what has changed in the EU with the Omnibus reforms and what it means for businesses.
The European Commission is currently running an open public consultation on guidelines for the Corporate Sustainable Due Diligence legislation (CSDDD). Read our submission to the consultation.
