The Commission’s proposal seeks to reshape EU Sustainability requirements by amending CSRD, CSDDD, EU Taxonomy, and CBAM.
By José María Alonso, Paul A. Davies, Fabrice Fages, Michael D. Green, Nicola Higgs, David Little, Cesare Milani, Axel Schiemann, James Bee, and Toon Dictus
On 26 February 2025, the European Commission (Commission) published its much-anticipated first Omnibus Package. This first Omnibus package regarding sustainability contains a set of legislative proposals designed to
The announcement follows declarations to simplify regulatory frameworks for businesses, and an overall drive to increase competitiveness in Europe.
By Paul A. Davies, Michael D. Green, and James Bee
On 8 November 2024, European Commission President Ursula von der Leyen indicated that certain existing and future EU ESG reporting obligations will be consolidated into one “omnibus” regulation, in a bid to streamline the increasing number of requirements that companies will face.
In particular, von der Leyen stated that
The CSDDD is set to impose mandatory human rights and environmental due diligence obligations for in-scope companies.
By Paul A. Davies, Michael D. Green, and James Bee
On 5 July 2024, the Corporate Sustainability Due Diligence Directive (CSDDD) was published in the Official Journal of the EU, marking a significant milestone in the growing regulatory environment in relation to companies being required to embed responsible business conduct into due diligence processes and policies.
Initially proposed in February 2022
The proposed regulation would ban forced labour-made products from the EU market, affecting companies’ supply chains and requiring compliance checks.
By Paul A. Davies, Michael D. Green, and James Bee
On 5 March 2024, the European Parliament and European Council announced that they had reached a provisional political agreement on the regulation (Regulation) that aims to prohibit any product manufactured using forced labour from being placed on or exported from the EU market.
The European Commission proposed
Following extended negotiations, the directive was endorsed with a significantly narrower scope that would reduce the number of companies affected.
By Paul A. Davies, Michael D. Green, and James Bee
On 15 March 2024, EU Member States endorsed the Belgian Presidency’s political deal on the Corporate Sustainability Due Diligence Directive (CSDDD), despite Germany abstaining from the vote.
The CSDDD would require companies to conduct due diligence to identify and assess environmental and human rights issues across their value
The new rules would oblige companies to integrate their human rights and environmental impact into their management systems.
By Paul A. Davies, Michael D. Green, and James Bee
On December 14, 2023, the European Council (Council) and European Parliament (Parliament) reached provisional agreement on the Corporate Sustainability Due Diligence Directive (CSDDD). The agreement follows an extensive negotiation processes, which began in June 2023, after the European Commission had initially proposed the CSDDD in February 2022.
The CSDDD’s key aim is to enhance the protection of the environment and human rights globally. The CSDDD as proposed will set obligations for companies regarding the actual and potential adverse impacts of their own operations, those of their subsidiaries, and those carried out by business partners, described as the “business chain of activities.” The CSDDD would also establish a requirement for large EU companies to adopt a plan to ensure that their business model and strategy are compatible with the Paris Agreement, i.e., including concrete targets and measures in line with limiting global warming to 1.5 °C.
The proposed CSDDD would establish rules on penalties and civil liability for infringements (although these will ultimately be set by Member States).
The Guidelines build on current social, environmental, and technological issues facing businesses following the last update in 2011.
By Paul A. Davies, Michael D. Green, and James Bee
The Organisation for Economic Co-operation and Development (OECD) released updated Guidelines for Responsible Business Conduct on 8 June 2023 (the OECD Guidelines).
Background to the OECD Guidelines
The OECD Guidelines, introduced in 1976, set out voluntary principles and standards to ensure multinational companies embed due diligence practices, to enhance sustainable development and address adverse social and environmental impacts. Currently, 51 countries adhere to the OECD Guidelines, including the majority of EU Member States.
Trialogue negotiations have begun following the parliament’s vote.
By Paul A. Davies, Michael D. Green, and James Bee
On 1 June 2023, the European Parliament voted to adopt its initial negotiating position on the EU’s proposed Corporate Sustainability Due Diligence Directive (CSDDD).
If adopted, the CSDDD would apply to large EU and non-EU businesses with significant net turnover in the EU. It would impose requirements to identify, prevent, end, or mitigate the negative impact of activities on human rights and the environment. CSDDD is still in the trialogue stage, whereby the three core branches of the EU negotiate the final content of legislation. Hence, the specific details of the CSDDD continue to evolve as they are negotiated by the EU’s political institutions. Further, as a directive that would need to be transposed into the domestic law of each EU Member State and given the key role for national regulators under the proposals, the CSDDD’s exact scope and impact will depend on the results of the negotiations and its implementation in each of the EU’s jurisdictions.
The Council’s position includes a number of differences from the European Commission’s original proposal, including in relation to the requirement to diligence the broader value chain.
By Paul A. Davies, Michael D. Green, and James Bee
On 30 November 2022, the European Council (the Council) — which comprises the views of the EU Member State governments — adopted its negotiating position on the EU’s proposed Corporate Sustainability Due Diligence Directive (CSDDD). The CSDDD would require large companies operating in the EU to undertake due diligence on their own activities and that of their suppliers, and to identify, mitigate, or avoid any actual or potential adverse impacts of their business operations. The CSDDD would also set out any penalties (including possible civil liability) in relation to the breach of such obligations.