Expert Analysis: How CS3D Will Impact You and Your Business

Having received all necessary approvals from the European Union Parliament and Council, the Corporate Sustainability Due Diligence Directive (CSDDD or “CS3D”) will enter into force by September 2024, with member states having until September 2026 to integrate it into national law.

CS3D applies to EU companies with at least 1,000 employees and over 450 million euros in turnover, and to non-EU companies active in the EU market with over 450 million euros in turnover.

Concerned organizations must identify and address the potential for negative impacts on human rights and the environment in their own operations and along their entire supply chain. They must also make their best effort to adopt and put into effect a transition plan for mitigating climate change impacts from their operations in accordance with the 2050 goals of the Paris Agreement and any additional targets under EU law.

This article looks at some of the most important requirements of CS3D, as well as its potential impact on 3E customers and product offerings.