European initiatives

Directive (EU) 2024/1760 of 13 June 2024 on corporate sustainability due diligence

The Directive (EU) 2024/1760 of 13 June 2024 on corporate sustainability due diligence will require large companies to :

• Integrate due diligence into policies and decision-making;
• Identify, prevent, mitigate, and minimise actual or potential adverse human rights and environmental impacts;
• Establish and maintain a complaints procedure;
• Monitor the effectiveness of the due diligence policy and measures;

Companies will also have to adopt a plan to ensure that their business model is consistent with efforts to limit global warming to 1.5°C. In the event of non-compliance, a civil liability regime and penalties will apply.  

Directive on improving the gender balance among directors of listed companies

The directive requires that, by 2026, listed companies shall have 40% of the under-represented gender among non-executive directors or 33% among all directors.

Corporate Sustainability Reporting Directive

The Corporate Sustainability Reporting Directive (CSRD) requires that all large companies in the EU disclose data on the impact of their activities on people and the planet and any sustainability risks they are exposed to.

Proposal for a directive on corporate sustainability due diligence

The European Commission has adopted a proposal for a Directive on corporate sustainability due diligence that will require companies to Identify, prevent, mitigate, and minimise actual or potential adverse human rights and environmental impacts of their activities. The proposal also introduces obligations for directors to establish and supervise the implementation of due diligence and to integrate it into the company's strategy.

Proposal for a Corporate Sustainability Reporting Directive (CSRD)

On 21 April 2021, the European Commission adopted a proposal for a Corporate Sustainability Reporting Directive (CSRD), which would amend the existing reporting requirements of the NFRD.

European Parliament resolution of 10 March 2021 with recommendations to the Commission on corporate due diligence and corporate accountability

Action Plan: Financing Sustainable Growth

Directive 2017/1132 of the European Parliament and of the Council of 14 June 2017 relating to certain aspects of company law

Directive 2017/828/EU of the European Parliament and of the Council as regards the encouragement of long-term shareholder engagement

Proposal for a Directive of the European Parliament and of the Council amending Directive 2013/34/EU as regards disclosure of income tax information by certain undertakings and branches

Green Paper of the European Commission : Building a Capital Markets Union

Directive 2014/95/EU of the European Parliament and of the Council as regards disclosure of non-financial and diversity information

Regulation No 596/2014 of the European Parliament and of the Council on market abuse (market abuse regulation)

Directive 2014/57/EU of the European Parliament and of the Council on criminal sanctions for market abuse (market abuse directive)

Auditreform

European Commission Recommendation of 9 April 2014 on the quality of corporate governance reporting (‘comply or explain’)

Directive 2013/50/EU of the European Parliament and of the Council on the transparancy requirements and on the prospectus

Directive 2013/34/EU of the European Parliament and of the Council on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings

Directive 2013/36/EU of the European Parliament and of the Council on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms

Green Paper of the European Commission : Long-term financing of the European economy

Action Plan : European company law and corporate governance - a modern legal framework for more engaged shareholders and sustainable companies

Proposal for a Directive of the European Parliament and of the Council on improving the gender balance among non-executive directors of companies listed on stock exchanges and related measures

Green Paper of the European Commission : The EU corporate governance framework

Green Paper of the European Commission : Audit Policy : Lessons from the Crisis

Green Paper of the European Commission : Corporate governance in financial institutions and remuneration policies

European Commission Recommendation of 30 April 2009 as regards the regime for the remuneration of directors of listed companies

European Commission Recommendation of 30 April 2009 on remuneration policies in the financial services sector

Directive 2007/36/EC of the European Parliament and of the Council on the exercise of certain rights of shareholders in listed companies

Directive 2006/46/EC of the European Parliament and of the Council on the corporate governance statement

European Commission Recommendation of 15 February 2005 on the role of non-executive directors of listed companies and on the committees of the board

Directive 2004/109/EC of the European Parliament and of the Council on the harmonisation of transparency requirements in relation to information about issuers whose securities are admitted to trading on a regulated market

European Commission Recommendation of 14 December 2004 fostering an appropriate regime for the remuneration of directors of listed companies

Directive 2004/25/EC of the European Parliament and of the Council on takeover bids

Action Plan : Modernising Company Law and Enhancing Corporate Governance in the European Union

Directive 2003/6/EC of the European Parliament and of the Council on insider dealing and market manipulation (market abuse)