On 24 April 2024, the European Parliament approved the final text of the European Directive on Corporate Sustainability Due Diligence (CSDDD). While the text still requires final sign off the from the Council of the EU, and translation before it is published in the Official Journal it is unlikely to change further. This briefing note summarises the requirements of the CSDDD as understood on 24 April, with particular focus on how it will affect the investment sector. It also draws comparisons with existing legislation including the SFDR and CSRD.

PRI strongly welcomes this directive. Mandatory human rights and environmental due diligence supports investors’ risk and impact analysis and enables better informed investee engagement. The final requirements are proportionate and practicable and should play a critical role in the achievement of the EU Green Deal which is fundamentally intertwined with EU competitiveness, security and resilience.