The scope of the Corporate Sustainability Due Diligence Directive (“CSDDD”) may be expanded to cover more companies, according to JURI Draft recently adopted by the European Parliament.

The draft CSDDD was proposed by the European Commission in February 2022, a crucial framework aimed at promoting responsible business practices. The CSDDD emphasises transparency, accountability, and stakeholder engagement, requiring businesses to conduct comprehensive assessments throughout their value chains. It brings due diligence requirements to be conducted by companies along with a duty of care applying to directors of companies falling under its scope. This directive plays a vital role in fostering sustainable economic growth, protecting vulnerable communities, and ensuring corporate accountability, ultimately leading to a more sustainable and equitable future for all. Moreover, the recently adopted JURI Draft shows that MEPs want more companies to be covered by the rules meaning that full attention should be on the CSDDD requirements. The next step will be European Parliament’s final vote on it, which is expected to be in June 2023.