Final approval: due diligence directive to be applied by firms from 2027

European Union Member States have finally adopted the Corporate Sustainability Due Diligence Directive (CSDDD), which will provide guidance to companies on how to identify risks of significant negative impacts in their operations and supply chain. The first companies will be required to follow it from mid-2027.

"The recognition that due diligence belongs in the realm of binding legislation marks a major breakthrough. It sends a clear message that companies providing low prices on the basis of dumping, child labour, pollution and exploitation will not be better positioned in the market and that victims of corporate abuse should have access to justice," commented Julia Otten, Senior Policy Officer at Frank Bold.

Identification of risks and their solutions. The directive will be reflected in Czech law within two years

In addition to identifying risks, the Directive also offers a way to respond to them. At Frank Bold, we have been drawing attention to the lack of solutions to the problematic behaviour of some companies on the European market for a long time and have been expertly involved in ensuring that the legislative solution is of the highest quality and as effective as possible.

The Directive will enter into force 20 days after the publication of the adopted text in the Official Journal of the European Union. The text must then be transposed into the legislation of the Member States, and therefore into Czech law, within two years.