Corporate Sustainability Due Diligence refers to the policies and frameworks established to ensure that companies operating within the EU and European Economic Area (EEA) adhere to high standards of environmental, social, and governance (ESG) practices. This involves the development, implementation, and enforcement of regulations that mandate comprehensive due diligence processes to manage and mitigate adverse impacts on people and the planet. In order to foster sustainability in corporate governance and management systems and to anchor human rights and environmental considerations in companies’ operations and corporate governance, the Commission adopted, on 23 February 2022, a proposal for a Directive on corporate sustainability due diligence. The new rules will ensure that businesses address adverse impacts of their actions, including in their value chains inside and outside Europe. The new diligence rules Even though a number of Members States have already introduced national rules on due diligence and some companies have taken measures at their own initiative, there is need for a larger scale improvement that is difficult to achieve with voluntary action. That is why this proposal establishes a corporate sustainability due diligence duty to address negative human rights and environmental impacts. The new due diligence rules will apply to European Companies and Non-EU companies active in EU, whereas small and medium enterprises (SMEs) are not directly in the scope of this proposal. This proposal applies to the company’s own operations, their subsidiaries, and their value chains, encompassing both direct and indirect established business relationships. To comply with the corporate due diligence duty, companies must integrate due diligence into their policies, identify actual or potential adverse human rights and environmental impacts, and take steps to prevent or mitigate potential impacts. Furthermore, they are required to bring to an end or minimise actual impacts, establish and maintain a complaints procedure, monitor the effectiveness of their due diligence policies and measures, and publicly communicate their due diligence efforts. This means more effective protection of human rights as stipulated in international conventions, such as ensuring workers to have access to safe and healthy working conditions. Additionally, the proposal aims to prevent adverse environmental impacts in violation of key environmental conventions. Companies in scope must respond appropriately, considering the severity and likelihood of different impacts, the measures available to them in specific circumstances, and the need to prioritize actions. Conclusion In conclusion, the proposed Directive on corporate sustainability due diligence represents a significant step forward in embedding human rights and environmental considerations into corporate governance and operations within the EU and EEA. By mandating comprehensive due diligence processes, this legislation aims to mitigate adverse impacts on people and the planet, ensuring that businesses address the negative consequences of their actions both within and beyond Europe. The Directive not only harmonises existing national regulations but also sets a higher standard for corporate responsibility, promoting sustainable business practices and enhancing the protection of human rights and the environment. Bibliography: Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on Corporate Sustainability Due Diligence and amending Directive (EU) 2019/1937: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52022PC0071 https://commission.europa.eu/publications/proposal-directive-corporate-sustainability-due-diligence-and-annex_en https://commission.europa.eu/business-economy-euro/doing-business-eu/corporate-sustainability-due-diligence_en https://ec.europa.eu/commission/presscorner/detail/en/IP_22_1145 Written by Marilena Martucci Born and raised in Fasano, Italy, she developed a deep fascination for linguistics and diverse modes of communication. Her academic journey commenced with a Bachelor’s degree in Linguistics and Intercultural Communication in Bari, followed by advanced studies in Linguistics and Translation in Pisa. Fueled by her passion for Portuguese culture and language, she embarked on two enriching Erasmus experiences in Coimbra and Lisbon. After completing her Master’s degree, she settled in Lisbon, immersing herself in the fields of Journalism and Communication while continuously refining her expertise in languages and translation. Specialising in medical translation, she furthered her academic pursuits by studying Economics and Communication. She transitioned to a career in translation as Schuman Trainee at the European Parliament, focusing on terminology. Beyond her professional life, she enjoys exploring new cuisines, cooking, dancing, and indulging in literature.