New EU Commissioner Reaffirms Commitment to Corporate Due Diligence Rules
- Muhammad Ahmad
- Nov 8, 2024
- 2 min read
Commissioner stands firm on Corporate Sustainability Due Diligence Directive’s scope and phased introduction
EU’s new due diligence law set to address environmental and human rights impacts
Incoming EU Commissioner commits to the Corporate Sustainability Due Diligence Directive (CS3D) timeline.
The CS3D will hold large EU companies accountable for supply chain impacts on human rights and the environment.
The directive’s phased rollout will begin in July 2027 and conclude by July 2029.
The incoming EU Commissioner responsible for the next phase of the Corporate Sustainability Due Diligence Directive (CS3D) has affirmed the law’s commitment to its planned timeline and comprehensive scope. In a recent parliamentary session, the Commissioner defended the directive's phased rollout, which aims to hold large European companies accountable for their environmental and human rights impacts across entire supply chains.
This directive marks a significant advance in EU policy as it strives to enforce corporate accountability in a way that could reshape business practices within Europe and globally. By setting phased compliance targets, the CS3D is expected to drive transformative change across industries, aligning them with the EU’s sustainable development goals.
Technical Focus
The CS3D is set to launch in phases, with full compliance required by July 2029. Targeted at large companies, this directive mandates integrating due diligence practices into corporate operations to mitigate harm across supply chains. The phased approach allows businesses time to adopt the necessary internal frameworks to meet EU environmental and social responsibility standards. This rollout will begin with larger entities in July 2027 and conclude for all targeted companies by July 2029.
The CS3D’s scope includes accountability measures for serious harm to human rights and environmental damage resulting from company activities, including those within their supply chains. The Commissioner underscored that “corporate accountability extends beyond borders and production lines,” emphasizing that the CS3D reflects Europe’s commitment to global ethical standards.
As the directive’s start dates approach, companies must establish robust due diligence processes and strategies. This landmark legislation ensures corporate responsibility, setting a high standard likely to influence global approaches to sustainable business practices.