European Shippers’ Council welcomes the new Corporate Sustainability Due Diligence Directive (CSDDD) proposal although it has been revised and watered down compared to the previous version. This legislation aims to contribute to a safer and cleaner production in global supply chains.
Under this directive, companies falling withing its scope become responsible for potential damage to the environment and personnel in the full value chain. The new rules apply to companies with more than 1000 employees (as opposed to 500 in the original text) and those with a turnover exceeding 450 million euros. Remarkably, only 0.1 percent of all companies will directly fall under the legislation.
Furthermore, the impact of the companies on the environment and the involvement of the financial sector in the legislation have been scaled down.
For more information, please see the official announcement by the Council of the EU of the 15th of March 2024.
For more information about Corporate Sustainability Due Diligence, please see here.