The new European directive on corporate sustainability due diligence establishes an obligation for companies to mitigate their adverse impact on human rights and the environment through their activities, those of their subsidiaries and those carried out by their business partners
The European Union has been working for some time on the development of corporate sustainability policies with the aim of raising awareness and strengthening the protection of the environment and human rights. As of 5 January 2024, for example, with a progressive time schedule system, companies with non-financial reporting obligations, large companies, small and medium-sized listed companies and subsidiaries of non-EU companies are required to publish detailed information on the impact that the activity they carry out may have on society and the economy, submitting their corporate sustainability reporting and reporting on environmental issues, human rights, anti-corruption measures and diversity issues.
Against this European backdrop, there is the proposal for a “Directive on Corporate Sustainability Due Diligence” on which the European Council and Parliament are working. On 14 December 2023, the two institutions reached a provisional agreement on the text of the new legislation, which is currently subject to final approval.
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