CORPORATE SUSTAINABILITY DUE DILIGENCE AND ITS IMPACT ON PUBLIC SECTOR REFORM IN THE EU

The European Union (EU) has introduced a comprehensive suite of sustainable finance regulations, including the Sustainable Finance Disclosure Regulation (SFDR), the Taxonomy Regulation, and the Corporate Sustainability Due Diligence Directive (CSDDD). This study investigates the CSDDD, which came into force on July 25, 2024, as a catalyst for promoting sustainable growth through public administration reform and enhanced corporate accountability within the framework of the European Green Deal. The research identifies synergies between the CSDDD and the Green Deal, demonstrating how effective governance can advance sustainability objectives across EU member states. Employing a mixed-methods approach, the study combines qualitative policy analysis with quantitative assessments of economic outcomes, drawing on case studies, stakeholder interviews, and literature reviews. Findings indicate that CSDDD implementation strengthens public administration by fostering accountability and transparency while aligning corporate practices with environmental and economic goals. The study concludes that integrating the CSDDD with the European Green Deal through coherent policy frameworks and collaborative governance can enhance sustainable economic growth and address pressing environmental challenges in Europe.