European Parliament approved the Corporate Sustainability Due Diligence Directive (CSDDD or CS3D) | Current Affairs | Vision IAS
News Today Logo

European Parliament approved the Corporate Sustainability Due Diligence Directive (CSDDD or CS3D)

Posted 26 Apr 2024

1 min read

  • CS3D aims to foster sustainable and responsible corporate behaviour and to anchor human rights and environmental considerations in companies’ operations and corporate governance.

 

  • Key Features: 
    • Need to follow Due Diligence: Includes methods through which corporates can account their actual and potential adverse impacts, such as pollution, child labor etc.
      • Companies will also have to adopt a transition plan to make their business model compatible with the Paris Agreement global warming limit of 1.5°C. 
    • Coverage
      • EU companies and parent companies with over 1000 employees a worldwide turnover higher than 450 million euro. 
      • Non-EU companies, parent companies and companies with franchising or licensing agreements in the EU reaching the same turnover thresholds in the EU will also be covered.
    • Penalties for violations: It include “naming and shaming” and fines of up to 5% of companies’ net worldwide turnover.

 

  • Concerns Related to CS3D: It poses challenges for companies from developing and underdeveloped countries. They need to invest more resources to comply with the regulation
  • Tags :
  • Corporate Sustainability Due Diligence Directive (CSDDD or CS3D)
  • Corporate Sustainability
Watch News Today