EU Parliament approves CSDDD

25 April 2024

Elizabeth Pfeuti

The European Parliament has voted to approve the Corporate Sustainability Due Diligence Directive (CSDDD) in another step towards the requirements being formally adopted by the European Union.
EU regulation

Latest News

SHareholder meeting

Minerva Proxy Update

SHareholder meeting

SBTi 2.0: From targets to disclosure, and what it means for investors

SHareholder meeting

Supreme Court Curbs Activist Lawsuits Against Investment Funds

SHareholder meeting

Minerva Proxy Update

SHareholder meeting

US lawmakers defend “freedom to invest” in pushback against anti‑ESG pressure

SHareholder meeting

FIR’s VOICE framework puts structure around measuring stewardship influence

Featured Briefings

Minerva Briefing

Australia Proxy Season Review 2025

Minerva Briefing

2026 Proxy Season Preview

Minerva Briefing

Diversity Divergence: Shareholders Steadfast Amid Pervasive Political Posturing

EU Parliament approves CSDDD

April 24th, 2024

The European Parliament has voted to approve the Corporate Sustainability Due Diligence Directive (CSDDD) in another step towards the requirements being formally adopted by the European Union.

The CSDDD will require companies to implement climate transition plans to make their business model compatible with the Paris Agreement global warming limit of 1.5°C and disclose the impact of their value chains on human rights and the environment.

The rules were first approved by Parliament back in June 2023, although the directive received criticism from climate activists that the rules could have been more stringent.

Last month, the directive was approved by the European Parliament’s Legal Affairs Committee, a crucial step for the directive in becoming a law. The rules were initially opposed by countries, including Germany and Italy, over the potential bureaucratic and legal impacts they could have on companies.

Under the original proposals, all companies with 500 or more employees and a turnover over €150 million would need to comply with the requirements of the CSDDD. The approved rules will only apply to larger companies with over 1,000 employees and a turnover of €450 million.

The rules also include non-EU based companies and will apply to companies with franchising or licensing agreements in the EU with worldwide turnover higher than €80 million, if at least €22.5 million was generated by royalties.

Non-EU companies, parent companies and companies with franchising or licensing agreements in the EU reaching the same turnover thresholds in the EU will also be covered.

The directive now also needs to be formally endorsed by the Council, signed and published in the EU Official Journal. It will enter into force twenty days later.

Member states will have two years to transpose the new rules into their national laws.

Related Stories

Science Based Targets initiative 2.0

SBTi 2.0: From targets to disclosure, and what it means for investors

June 18, 2026
Read More

Australia narrows climate reporting scope mid‑rollout

May 20, 2026
Read More

SEC Steps Closer to Unwinding Climate Disclosure Rules

May 13, 2026
Read More

Texas Climate Investing Blacklist Stays on Ice

April 17, 2026
Read More

Regulating the Raters: The FCA’s ESG Regulatory Proposals, Minerva’s Response, and What the Market Should Watch

April 16, 2026
Read More

FCA Sustainability Disclosure Proposals: A Turning Point for UK Market Transparency

April 10, 2026
Read More