The European Parliament’s Legal Affairs Committee has announced the approval of the revised Corporate Sustainability Due Diligence Directive (CSDDD). This version of the bill is a scaled-down from the one previously agreed upon by the EU Parliament and Council. It was passed in Parliament; however the Council vote was postponed due to concerns about the bureaucratic and potential legal impact it would have on companies. The revised bill significantly reduces the number of companies covered by raising the thresholds of those covered. The new thresholds require companies to have 1,000 employees and more than €450 million in revenue to be included. This cuts the number of companies covered by about two-thirds. Other changes to the law include phasing in the legislation over five years. The law also excludes product disposal activities and removes the requirement for companies to promote climate transition plans through financial incentives.

Source: ESG Today