Compromise on CSDDD reached and approval of the text of the directive by the EU Council

POLSIF welcomes the fact that Member States have reached a compromise on the final shape of the Corporate Sustainability Due Diligence Directive (CSDDD) and the approval by the EU Council of the text of the Directive.

POLSIF shares the position of Eurosif - The European Sustainable Investment Forum, according to which CSDDD plays a key role in accelerating sustainable transformation and will help to more effectively prevent actions that harm the environment and violate human rights.

As part of the compromise, the scope of entities covered by the Directive was significantly narrowed (by about 2/3). It will apply to companies and capital groups with more than 1000 employees (in the original proposal 500) with revenues of more than 450 million euros (in the original proposal 150 million euros).

The scope of the CSDDD will include, to a limited extent, financial institutions which will, inter alia, be required to adopt a plan to ensure that the business model and business strategy comply with the objectives of the transition to a sustainable economy and with the objective of limiting global warming to 1.5°C.

The next step on the road to the adoption of the CSDDD is the vote in the European Parliament, which is likely to take place in April.

The text of the directive, approved by the EU Council, is available at the following link: https://lnkd.in/divTBkDa

‍