COMPASS provides a regulatory outlook for 2024 and beyond
7 February 2024
New rules for companies have now come into force or are in the pipeline of policymakers. Here follows an overview of some of the most important changes:
In Germany, more companies will have to comply with corporate responsibility requirements, such as respecting human rights in global supply chains.
The legal basis for this is the German Supply Chain Due Diligence Act (LkSG), which includes protection against child labour, the right to fair wages and environmental protection.
From 1 January 2024, the law applies to all companies with at least 1,000 employees in Germany (previously the threshold was 3,000 employees).
Based on the LkSG, the European Corporate Sustainability Due Diligence Directive (CSDDD) is about to be formally adopted. Here, too, companies must guarantee compliance with human rights along the supply chain.
Additionally, climate protection is part of the corporate due diligence obligations. Following adoption by the EU institutions, member states will have two years to transpose the directive into national law.
At EU level, the Corporate Sustainability Reporting Directive (CSRD) is already established for larger companies.
From 1 January 2024, the CSRD reporting obligations now apply to companies of public interest with more than 500 employees. From 1 January 2025, the group of companies will be extended to include all other large companies under accounting law.
It is also expected that the EU Greenwashing Directive will come into force in 2024.
Furthermore, the EU wants to reach an agreement on its Packaging Regulation before the EU elections in June. Among other things, the regulation will set targets for recycled content, recycling quotas and extended producer responsibility (EPR) to reduce packaging waste by 15% by 2040 (see also article on the Packaging Regulation here).
The Ecodesign Regulation, Green Public Procurement Directive, Waste Shipment Directive, Waste Framework Directive, including extended producer responsibility obligations for textiles, the Right to Repair Directive, and a Regulation preventing plastic pellet losses to reduce microplastic pollution are also due to pass the EU Parliament and Council in 2024.
The regulatory focus will therefore remain strongly on the circular economy and corporate due diligence.
COMPASS will continue to focus on this legislation in 2024. For more information and support, please contact us here.