The implications of the Directive on corporate sustainability due diligence on Spanish companies

On 1 June 2023, the European Parliament approved the Directive on corporate sustainability due diligence (the CSDDD). The CSDDD requires companies within its scope to conduct due diligence and take responsibility for human rights abuses and environmental harm throughout their global value chains.

In this article by Expansion, Eduardo Sancho Garcia, Manager - Corporate Governance at Morrow Sodali, delves into the issue and analyzes the implications that the transposition of this directive could have on the corporate governance of Spanish companies.

Among the implications of the directive, there is a requirement for boards to acquire new skills related to human and environmental rights. Additionally, the variable remuneration of the executives must be linked to the company’s successful transition plan and its engagement in the fight against climate change. The Say on Climate spirit could potentially be extended to include the climate agenda of all companies, creating a new legal framework for them.

Read the full article here (in Spanish).