The Corporate Sustainability Due Diligence Directive (CSDDD): an analysis of the potential economic and legal impacts

Audinga Baltrunaite, Romualdo Canini (), Francesca Chiarelli (), Enrica Consigliere (), Piera Coppotelli (), Federico Fornasari (), Tommaso Loizzo (), Sauro Mocetti, Chiara Muraca (), Raffaele Parrella (), Federico Schimperna () and Enrico Sette
Additional contact information
Romualdo Canini: Bank of Italy
Francesca Chiarelli: Bank of Italy
Enrica Consigliere: Bank of Italy
Piera Coppotelli: Bank of Italy
Federico Fornasari: Bank of Italy
Tommaso Loizzo: Bank of Italy
Chiara Muraca: Bank of Italy
Raffaele Parrella: Bank of Italy
Federico Schimperna: Bank of Italy

No 869, Questioni di Economia e Finanza (Occasional Papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: On 24 April 2024, following lengthy political and technical negotiations, the European Parliament adopted the Corporate Sustainability Due Diligence Directive (CSDDD), which requires the largest European financial and non-financial companies to comply with due diligence obligations to ensure that their operations and those carried out along their chain of activities do not violate the human and environmental rights enshrined in international treaties. This paper makes several contributions. First, it provides an in-depth analysis of the obligations of companies subject to the CSDDD and of private and public enforcement mechanisms. Second, it provides an estimate of the number and the economic importance of Italian firms subject to the Directive, as well as a study of its scope of application, should it be extended to financial services. Finally, it presents a preliminary assessment of the effectiveness of the Directive in preventing violations of human and environmental rights treaties and its overall economic effects, although its actual impact will depend on how it will be made operational by EU Commission and national authorities.

Keywords: CSDDD; due diligence; sustainability; transition; banks; companies (search for similar items in EconPapers)
JEL-codes: G21 G23 K20 M10 (search for similar items in EconPapers)
Date: 2024-07
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.bancaditalia.it/pubblicazioni/qef/2024-0869/QEF_869_24.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bdi:opques:qef_869_24

Access Statistics for this paper

More papers in Questioni di Economia e Finanza (Occasional Papers) from Bank of Italy, Economic Research and International Relations Area Contact information at EDIRC.
Bibliographic data for series maintained by ().