Multinational corporations are poised to face considerable financial penalties under the European Union’s impending Corporate Sustainability Due Diligence Directive. Scheduled to come into effect by 2027, the directive mandates that companies ensure their supply chains adhere to stringent environmental and human rights standards. Non-compliance could result in fines as substantial as 5% of a company’s global turnover. In addition to these fines, businesses will also need to contend with increased compliance costs and potential lawsuits, which could further impact their financial standing.
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