The Corporate Sustainability Due Diligence Directive (CSDDD or CS3D) is a significant European Union initiative, shifting businesses from voluntary environmental and social practices to legally binding obligations. Companies must align with stringent standards to address issues like child labor, modern slavery, and environmental degradation. The directive's phased implementation starts in 2026 and focuses on companies with extensive operations and revenues.
CSDDD requires companies to proactively identify, prevent, and mitigate adverse impacts across their value chains. It mandates transparency and public reporting, enhancing trust with consumers and investors. The directive also imposes financial penalties for non-compliance, highlighting the importance of sustainable practices for business stability.
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