On 23 February 2022, the European Commission presented a legislative proposal for a Directive on Corporate Sustainability Due Diligence Directive (DD Proposal). In essence, the Directive requires certain companies to meet due diligence obligations with respect to human rights and environment and provides for an enforcement mechanism with possible sanctions and civil liabilities for non-compliance. The Directive will apply to both EU and non-EU companies that meet thresholds with respect to turnover and number of employees. Below, we explain the key elements of the DD Proposal.
Source Reed Smith
