Progress on Corporate Sustainability in the European Union (EU)

With the adoption of the Directive on corporate sustainability due diligence.

This measure establishes an obligation for large companies to conduct environmental and human rights due diligence in their operations and supply chains.

This legislation is expected to promote responsible and sustainable business behaviour, reducing adverse impacts on human rights and the environment. In addition, it is noted that this approach to corporate sustainability could have significant tax implications, including changes to transfer pricing and intellectual property models, as well as a reassessment of the tax position of organisations.