European Union Corporate Sustainability Due Diligence Directive (CSDDD): A Legai Study or Due Diligence Obligations

Abstract

Corporate Environmental Responsibility (CER) has long been viewed as a voluntary aspect of CSR. which Is driven by SON law tools, ethical obligatIons and market Incentives. Nevenheless, the alarming rate of climate change, Joss of biD-diversity and environmental degradation has led to regulatory transformation of voluntary corporate to compulsory legal requirements. In this paper, we are going to explore how corporate environmental responsibility has evolved with the trend of becoming a legally binding responsibility as a result of mandatory environmental due diligence laws. The stud)' examines the changing regulatory frameworks such as the European Union Corporate Sustalnabillty Due DIligence Directive (CSDDD), national supply chain due diligence laws, and climate related disclosure laws. It assesses the extent to which these legal tools place proactive requirements on corporations In order to detect, avoid. control. and report on environmental damage throughout their operations and value chains. The paper carries a doctrinal legal approach. In an attempt to understand the scope. enforcement procedures and the lJabllity provisions that are contained In the modern due diligence regimes. The an/de maintains that mandator), environmental due diligence Is a jurldlflcatlon of CSR, the Institution of environmental responsibility In corporate governance Institutions and responsibility of directors. It also looks at whether these legal mechanisms can be successful In Increasing the accountability of the corporations or whether they may turn Into procedural compliance tools but have no meaningful effects of environmental change. The study reviews the practical Implications of this regulatory evolution by discussing the Issues of enforcement, extraterritorial application and access to remedies of affected communities. Finally, the paper ends by staling that the environmental due diligence laws represent a paradigm shift in corporate regulation, which goes beyond voluntarism to a paradigm of enforceable sustainabl1Jty regulation. Their success, however. relies on their strong enforcement. proper liabiJity and stakeholder involvement.