Have you heard of the acronym CSDD?

CSDD (also abbreviated CS3D) stands for Corporate Sustainability Due Diligence Directive. It is an EU proposal for a directive that will enable a faster green transformation and protect human rights in Europe and beyond.

With the help of the directive, the EU wants to promote sustainable and responsible corporate behavior throughout its value chain.

If the directive is adopted, it will place an obligation on large companies operating in Europe to:
- Integrate human rights and environmental due diligence into their corporate governance processes and policies.
- Identify actual and potential adverse impacts on human rights and the environment.
- Prevent or mitigate potential adverse impacts, and end or minimize actual impacts.
- Establish and maintain a complaints procedure.
- Monitor the effectiveness of due diligence policies and measures.
- Publicly communicate what they are doing in this area.

The proposal has been criticized from several quarters, including the European Commission's Legislative Council.

The regulation is proposed to be applied in three stages:
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- On January 1, 2024 for companies already covered by the Non-Financial Reporting Directive (NFRD).
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- On January 1, 2025 for large companies currently not covered by the NFRD.
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- On January 1, 2026 for listed SMEs, small and non-complex credit institutions and captive insurance companies.