On 14 December, the EU Parliament and EU Council agreed on the new rules of the CSDDD which sets up a framework obliging companies to integrate internal policies and risk-management systems to prevent, identify and mitigate any adverse impact on human rights or the environment. The objective is to achieve more sustainable production of goods and services, better labour conditions, more sustainable investments and increased transparency on how products are made. In addition, companies must adopt a plan demonstrating that their business operations and strategy are in line with the Paris Agreement (limiting global warming to 1.5°C). Financial incentives are envisaged for those companies with more than 1,000 employees which implement the plan. The directive now needs to be formally adopted by both houses and transposed into national legislation.

Learn more about CSDDD, here: https://www.consilium.europa.eu/en/press/press-releases/2023/12/14/corporate-sustainability-due-diligence-council-and-parliament-strike-deal-to-protect-environment-and-human-rights/