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Silke Goldberg, global head of ESG at Herbert Smith Freehills, says:

"The passing of CS3D marks the beginning of a new age of mandatory human rights and environmental due diligence, and brings clarity after many months of questions and speculation. 

"When placed alongside the Corporate Sustainability Reporting Directive and the EU's Forced Labour Regulation, there is undoubtedly greater certainty for businesses and for stakeholders. This is another piece in the puzzle that needs to be pieced together if businesses are to understand and manage their impacts on people and the planet, and leverage sustainability opportunities responsibly.

"Fears that the EU may rip up the rule book on human rights and environmental due diligence have proved to be unfounded. Yet the consensus needed to bring the Directive over the line means that the new rules only apply to companies with one thousand employees and €450 million in turnover. The net result may be that its impact could still be questioned."

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Silke Goldberg

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