24-hour hotline : 23 922 922
e-mail address : enquiry@tid.gov.hk
Ref. : EIC 230/1
8 July 2024
Dear Sirs,
The European Parliament and the Council of the EU have adopted Directive (EU) 2024/1760, which is also known as the Corporate Sustainability Due Diligence Directive (CSDDD). The CSDDD was published on 5 July 2024 and is available at: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:L_202401760.
2.The CSDDD sets out mandatory due diligence requirements for certain EU and third-country (i.e. non-EU) companies to identify, prevent, mitigate and account for, among others, environmental impacts. EU companies with over 1,000 employees and over EUR 450 million net annual worldwide turnover as well as third-country companies with over EUR 450 million net annual turnover in the EU are covered. The CSDDD applies to these companies' own operations, their subsidiaries and their business partners through their chains of activities, covering activities of both companies' upstream and downstream business partners, including those located outside the EU.
3.The CSDDD will enter into force on 25 July 2024 and the EU Member States will implement the Directive by 26 July 2026, which will apply gradually from 2027 to 2029 depending on the size of the companies. Relevant information on the CSDDD prepared by the European Commission is available at: https://commission.europa.eu/business-economy-euro/doing-business-eu/corporate-sustainability-due-diligence_en.
4.For enquiries concerning the content of this circular, please contact the undersigned at 2398 5684.
Yours faithfully,
(Ms Tracy MAK)
for Director-General of Trade and Industry
* The EU comprises 27 member countries, namely, Austria, Belgium, Bulgaria, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.
| Note 1: | While every effort is made to ensure the accuracy of the above information, the Department cannot guarantee this to be so and will not be held liable for any reliance placed on the same. |
| Note 2: | "Regulatory Alert - EU" of the Hong Kong Trade Development Council provides up-to-date information on the latest developments in EU trade policy and trade regulations. It is available at: https://research.hktdc.com/en/regulatory-alerts/eu. |