Evaluation of the Corporate Sustainability Due Diligence Directive

Author(s): Andrei Marcu, Michael Mehling, Ana Ruiz

Considering the recently published EU Corporate Sustainability Due Diligence Directive (CS3D) – and its entry into force on July 25, 2024 – ERCST has conducted an evaluation of the final text of the CS3D, building on its previous work resulting in the report “The EU Corporate Sustainability Due Diligence Directive and its Extraterritorial Effect: Promise and Pitfalls”

This analysis considers not only earlier elements from the legislative process, namely the two previous negative opinions from the European Commission’s Regulatory Scrutiny Board and the Commission Staff Working Document, as well as the Commission’s initial proposal. Focus is given to the directive’s key provisions and elements, as well as unresolved issues, such as inconsistencies with other directives (like CSRD), company concerns about due diligence, extraterritoriality, liability risks, administrative burdens and impacts on non-EU businesses.