The European Commission has proposed a Corporate Sustainability Due Diligence Directive (CSDDD) that will require large companies to incorporate due diligence in their company policies to mitigate adverse impacts on the environment and human rights in their operations and places the obligation also on all of their established business relationships globally. Therefore, all companies, no matter how big or small, that are in a value chain of a company that falls within the scope of this Directive, whether in Malta or internationally, will also require to abide by the code of conduct to be compliant with this Directive. The requirements of the CSDDD will also apply to all non-SMEs when seeking credit from financial institutions.

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