Following the adoption of the CSRD (Corporate Sustainability Reporting Directive), which came into force on January 1, 2024, the compromise on the European directive on corporate responsibility for human and environmental rights was approved today by the member states of the European Council. The CS3D directive, aimed at imposing an obligation of social and environmental protection, is on the way to becoming a reality after weeks of heated debate.

Compared with the previous compromise, the scope of the directive has been narrowed. Only companies with over 1,000 employees and sales over €450 million will be affected, thus targeting 5,300 companies instead of the 15,000 initially targeted. The notion of high-risk sectors, such as the textile industry, agriculture, forestry, fishing, agri-food, mining and construction, is no longer taken into account.

In addition, obligations relating to climate risks and the civil liability of companies in the event of non-compliance with due diligence obligations have been removed. Each member state will be free to incorporate these requirements into its national legislation. Despite the higher thresholds compared with current French legislation, this compromise marks a significant step backward compared with previous commitments made by the European institutions.

Approval of this text is the first step towards its final adoption. Before the parliamentary vote, the Legal Affairs Committee still has to give its approval, possibly as early as next week.

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