Downloadable guide: orientation to CS3D and CSRD guidelines. The new era of due diligence and ESG reporting in companies

The Frank Bold Expert Group, in cooperation with ClientEarth, presents the final legal analysis of the CS3D, which is now available for download. This analysis analyses all environmental aspects of the Directive in detail and can serve as a tool for national governments, as well as companies and authorities, to maximise its potential over the next two years.

The recently approved Corporate Sustainability Due Diligence Directive (CS3D) is the first cross-sectoral legislation to oblige large companies in the EU to identify, prevent and address negative human rights and environmental impacts.

These obligations apply not only to their own activities, but also to the activities of their subsidiaries and business partners along the value chain. In addition, companies must put in place a plan to reduce greenhouse gas emissions and adapt their business strategy to contribute to the transition to a sustainable economy and to reducing global warming to 1.5°C.

In addition, firms must externally disclose key information about their policies, procedures and due diligence measures, including their findings and results. For most companies covered by the CS3D, this obligation is covered by the Corporate Sustainability Reporting Directive (CSRD), which has amended the Accounting Directive and now requires disclosure of sustainability-related data.

‍Why download this guide?

• Better understand the provisions relating to the environmental scope of the CS3D and CSRD.
• You will have access to clear recommendations on how to transpose CS3D into national law.
• Encourage broader coherence with the CSRD.
• Ensure a high level of environmental protection by aligning with OECD and UNGP guidelines.
• If you are a legislator, you will have access to clear recommendations on how to transpose CS3D into national law.

‍Who is this guide for?

• Members and legislators of national parliaments.
• Legal commissions and similar independent bodies invited to submit draft legislation to transpose the CS3D.
• Executive officials, who are responsible for drawing up national legislation in line with EU law.
• To the companies themselves, who are trying to better understand what these provisions mean.