The upcoming Directive on corporate sustainability due diligence is a proposed EU directive that aims to strengthen corporate accountability for environmental and social impacts and enhance transparency concerning sustainability matters. The directive will require companies to conduct due diligence on the environmental and social risks and impacts associated with their operations and supply chains.
Moreover, companies will have to disclose information on those risks and impacts to their shareholders and the public. The directive will also establish a framework for companies to manage and mitigate those risks and impacts, and to report on their progress in doing so. The directive is expected to affect a wide range of companies, including large companies and groups, as well as companies in specific sectors such as extractive industries, and companies operating in high-risk countries.