Corporate Sustainability Due Diligence Directive
The Corporate Sustainability Due Diligence Directive (CSDD) is a European Union regulation that requires large companies to conduct due diligence to identify and mitigate potential negative environmental and human rights impacts and report on their sustainability performance. The directive applies to companies with more than 500 employees and requires them to assess and manage the environmental, social and governance (ESG) risks associated with their activities, products and services. The directive also requires companies to publish information on the measures they have taken to manage these risks and to publish a non-financial statement that includes information on the company's ESG performance. The directive is part of the EU's broader strategy to promote sustainable development and ensure that companies are held accountable for their ESG impacts.