Nachhaltigkeit
Nachhaltigkeit
27 March 2024

European Union:
Compromise on the European Supply Chain Directive CSDDD

On March 15, 2024, the Committee of Permanent Representatives (COREPER) approved a compromise proposal on the Corporate Sustainability Due Diligence Directive (CSDDD) after prolonged resistance from several member states.

The CSDDD obliges companies of a certain size to comply with human rights and environmental standards along their global value chain. Compared to the provisional agreement in December 2023, there are a few defusions, particularly with regard to the scope of application.

Scope of application defused

EU companies with an average of more than 1,000 employees (previously 500 employees) and a worldwide net annual turnover of at least 450 million euros (previously 150 million euros) are now affected. Non-EU companies fall within the scope of the CSDDD if they generate a net annual turnover of at least 450 million euros in the EU (previously 300 million euros).

The lower minimum thresholds for certain sectors such as textiles, agriculture and the extraction of raw materials have been removed. The financial sector remains excluded. Longer transition periods have also been agreed regarding first-time application.

Around 1,500 companies affected in Germany

It is expected that around 5,000 companies in the EU will be affected by the CSDDD, including around 1,500 in Germany.

The next step is expected to be the adoption of the compromise by the Council of the European Union. This will be followed by a vote on the amended regulations in the European Parliament.

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