Corporate Sustainability due diligence directive – what the accountancy profession should know

The global climate crisis threatens the environment, our health, and life on Earth. The EU aims to reach net-zero by 2050 to combat this. Meanwhile, global value chains have exposed severe human rights and environmental violations across the world. The active involvement of businesses will be paramount to address these challenges and achieve the necessary sustainability transition.

With the Corporate Sustainability Due Diligence Directive, the European Commission aims to trigger behavioural change in businesses; and hold them accountable. CSDDD introduces mandatory due diligence obligations to EU and non-EU large companies; and establishes liability in case of non-compliance. Small and medium-sized businesses (SMEs) will also be affected as they are part of value chains.

The accountancy profession will play a key role in supporting companies enforce the new law, including SMEs. This publication provides an overview of CSDDD’s main provisions to assist the profession in this task