Corporate Sustainability Due Diligence Directive (CSDDD): CDP Policy Explainer

Earlier this year, CDP released a policy explainer on the Corporate Sustainability Due Diligence Directive (CSDDD). The directive requires companies to implement due diligence processes to manage human rights and environmental risks, focusing on aligning business practices with the EU Green Deal and Paris Agreement targets.

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Highlights from the explainer:

• The CSDDD mandates large EU and non-EU companies to develop climate transition plans.
• It complements the Corporate Sustainability Reporting Directive (CSRD), streamlining reporting requirements.
• While SMEs are not directly regulated, those in the supply chains of larger companies will still be affected.

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This policy guide emphasises the need for companies to proactively manage environmental risks and prepare for CSDDD compliance, aligning them with key EU sustainability goals and improving access to sustainable finance.

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Read the CDP Policy Explainer here: