The EU Directive on Corporate Sustainability Due Diligence and amending Directive (EU) 2019/1973 (CSDDD) will require some companies inside and outside of the EU to undertake due diligence on their environmental and human rights impacts and create a plan to mitigate climate change.

Due diligence in this context refers to the process businesses should carry out to identify, prevent, mitigate, and account for how they address the actual and potential adverse human rights or environmental impacts in their operations, their chain of activities and other business relationships. For example, this may include forced and child labour, inadequate workplace health and safety, workplace exploitation, greenhouse gas emissions, pollution
and biodiversity loss and ecosystem damage.