corsus enquires: legal input on the LkSG and the CSDDD

corsus advises many companies on the implementation of reporting obligations. The focus of our advice is not only on sustainability reporting in accordance with the Corporate Sustainability Reporting Directive (CSRD), but also on the reporting obligations arising from the German Supply Chain Duty of Care Act (LkSG) and the European Corporate Social Due Diligence Directive (CSDDD). In a workshop, corsus has now discussed current developments regarding the two laws and the legal perspective on the LkSG and the CSDDD with the renowned lawyer Roda Verheyen from Hamburg.

Roda Verheyen is a leading German environmental lawyer and judge at the Hamburg Constitutional Court. She has led important environmental law cases, including the case that led to the landmark climate decision of the Federal Constitutional Court in 2021. On behalf of Saúl Luciano Lliuya, a mountain guide and small farmer from Peru, Roda Verheyen is conducting proceedings against the energy giant RWE to hold the major emitter of greenhouse gases financially accountable for the consequential damage caused by climate change.

In the discussion with corsus on the LkSG and the CSDDD, Roda Verheyen pointed out in particular that the European Supply Chain Act better incorporates environmental due diligence obligations such as biodiversity. From the entry into force of the CSDDD, companies can be held liable not only for human rights violations in the supply chain caused by biodiversity loss, but also directly for biodiversity loss. In German supply chain legislation, this is only the case for specific issues such as due diligence obligations arising from the Minimata Agreement. As a result, biodiversity management in the supply chain is becoming more important. This is very relevant for corsus, as our consulting services also include the implementation of sustainability management in companies and the calculation of the biodiversity footprint, analogous to the climate footprint. The following topics were also included in the CSDDD:

trade in endangered species of wild flora and fauna,
the Prior Informed Consent procedure for the import and export of toxic substances and pesticides,
substances that deplete the ozone layer,
damage to the world’s natural heritage and wetlands,
wetlands, pollution from ships and pollution of the marine environment through discharges.

Roda Verheyen also pointed out the synergies between the CSDDD and the CSRD, for example in the Climate Transition Plan (Art. 22 CSDDD| ESRS E1).

The corsus team would like to thank Roda Verheyen for her input and the exciting discussions. We wish her every success for the further proceedings!

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