The Corporate Sustainability Due Diligence Directive (“CS3D”) was published in the Official Journal of the European Union on 5 July.
With the entry into force of the CS3D on 25 July 2024 and its incorporation into national law in EU countries:
Companies covered by the CS3D will be required to implement due diligence processes to identify material adverse impacts (i) on human rights and (ii) on the environment.
The due diligence process covers the activities of the company, its subsidiaries and the companies in its chain of activities.
Companies covered by the CS3D are required to prepare and annually update a climate transition plan.
The CS3D is one of the most important milestones in European regulation. It will require companies to make efforts in several areas, in particular in their corporate governance, internal audit, corporate culture, contracting and cooperation with partners. The compliance burden is significant and the best way to ensure compliance with the CS3D is to start preparing now to avoid unwelcome surprises.
In this checklist, PLMJ highlights the essential steps to prepare for the implementation of the CS3D in your organisation.
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