After the directive threatened to fail, the EU Council adopted the Corporate Sustainability Due Diligence Directive (CSDDD) in April. The EU Parliament has now also approved it. The European supply chain law has thus been adopted.

Since the EU Parliament and Council reached a provisional agreement in December, there have been several adjustments to the scope of the law. However, with an expected higher threshold of 450 million euros in annual turnover, only around 5,400 instead of 16,400 companies are now covered by the law. This means that the national LkSG will probably remain stricter for German companies.

Now it is up to the 27 member states: they still have to approve the directive – but this is considered a formality. They then have two years to transpose the EU requirements into national law.