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The CSDDD heralds a paradigm shift. Large companies in the European market must make efforts to prevent harm to people and the environment along their global chains of activities, even if they do not think this is profitable.

Companies must engage in meaningful consultations with trade unions and other stakeholder groups. Barriers to civil legal protection will be reduced.

Beginning in 2027, national supervisory authorities will monitor compliance with the obligations. BAFA is already active in Germany. In future, fines may amount to 5 per cent of annual turnover and will be made public...