EU Corporate Sustainability Due Diligence Directive

Regulators around the world are incorporating environmental and social principles into formal policy frameworks. Novel legislation has emerged to address multiple sustainability megatrends, such as the imperatives to combat climate change, improve supply chain human rights, and ensure sustainable resource consumption. Moreover, policy makers are focusing on increasing the accountability of businesses to ensure their sustainability impacts are properly managed.

The European Union’s forthcoming Corporate Sustainability Due Diligence Directive is one such example, requiring firms to integrate their human rights and environmental impacts into business management systems. Certain companies with economic nexus in the European Union (EU) will need to navigate and prepare for these new regulatory requirements, ensuring that they develop or incorporate the appropriate risk identification and management mechanisms necessary to comply and achieve intended outcomes.