On February 23, 2022, the European Commission published its long-awaited proposal for a new Directive on Corporate Sustainability Due Diligence.
The proposal aims to address any negative impacts of global corporate value chains on the environment and human rights, by requiring companies that sell products within the EU to identify, monitor and address (i.e. prevent, put an end to, or mitigate) any such impacts. Larger companies will be required to draft a climate plan, to ensure that their business strategy is compatible with limiting global warming to 1.5°C.
The Directive will apply also to non-EU companies that do significant business in the EU.
Please click here to read the full alert memorandum.