Provisional agreement was reached in respect of the proposed Corporate Sustainability Due Diligence Directive (CSDD) at the last trilogue meeting in mid-December 2023. Further work is needed at a technical level in order to finalise the text of the Directive and this work remains ongoing. An updated text reflecting this work is awaited.
Subject to formal endorsement at EU level by Council & the European Parliament, it is expected that the Directive will take effect by mid-2024. Thereafter, Member States will have two years to transpose the CSDD. There will be a phased approach to the implementation of the Directive with obligations applying to very large companies (1,000 employees and €300m turnover) three years post transposition; to large companies after four years; and to smaller companies, in specified high-risk sectors, after five years.
This is a complex proposal with far-reaching implications for companies and stakeholders and my Department will continue to engage with stakeholders during the transposition process.