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The impact of ESG due diligence regulation on contractual autonomy of entrepreneurs

Publication at Faculty of Law |
2023

Abstract

In addition to the already adopted CSRD, the forthcoming CSD (Corporate Sustainability Due Diligence Directive) will be part of the EU's sustainability package (ESG). The aim of this regulation is to counteract negative externalities arising from the activities of businesses (especially large corporations).

Businesses will thus be obliged to carry out due diligence in their supply chains and thus indirectly take into account the sustainability of their (potential) contractors' business in business negotiations (especially when entering into business relationships). In recent years, it has become clear that the public sector alone is not able to sufficiently steer and stimulate the economy towards sustainability.

Is such interference in the contractual autonomy of entrepreneurs legitimate? Does it really represent a way of effectively achieving a higher level of sustainability? This paper will attempt to contribute to the debate on these questions that are increasingly being raised in the context of future regulation.