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Even if there is a slowdown in the implementation of new ESG legislation, it will not diminish the challenges for companies. A significant volume of existing regulations, such as the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD), are already in a preliminary stage of implementation. The full economic impact of these regulations is uncertain, but it is likely to be substantial. Alongside government enforcement, citizens and non-governmental organizations are increasingly using litigation (ESG-related lawsuits) to hold companies accountable for, inter alia, their climate and human rights commitments, with potential administrative, civil, and even criminal penalties as a result. Companies need to map out their value chains, rationalize processes across the CSRD and the CSDDD, and build environmental and human rights due diligence into all their functions.
Businesses need to
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