The CSDDD

What is the overlap of EUDR and CSDDD?

Are there other corporate sustainability due diligence laws?

Yes, for example the German Supply Chain Act, which is another example of a due diligence law focused on corporate sustainability.

How can companies get started with CSDDD?

To get started with the Corporate Sustainability Due Diligence Directive (CSDDD), companies should follow these key steps: Understand the requirements: Familiarize yourself with the CSDDD's scope, due diligence obligations, and reporting requirements. Understand which adverse human rights and environmental impacts are relevant to your business and value chain. Assess your value chain: Identify and prioritize the most salient risks in your own operations and throughout your value chain. This involves mapping your suppliers and understanding their practices. Develop a due diligence strategy: Establish clear policies, procedures, and processes to prevent, mitigate, and remediate adverse impacts. This may include setting codes of conduct for suppliers, implementing grievance mechanisms, and developing monitoring and auditing procedures. Integrate due diligence into your business: Embed due diligence into your existing risk management, procurement, and corporate governance frameworks. Ensure that sustainability considerations are integrated into decision-making processes at all levels of the organization. Communicate and report: Transparently communicate your due diligence efforts to stakeholders, including investors, customers, employees, and the public. Regularly report on your progress in identifying and addressing adverse impacts. Additional tips for getting started: Start early: Don't wait for the CSDDD to be formally implemented. Early action can help you identify and address risks more effectively. Engage stakeholders: Consult with employees, suppliers, customers, and other stakeholders to gather input on your due diligence strategy and ensure it is comprehensive and effective. Use technology: Leverage digital tools and platforms to streamline your due diligence processes and improve data collection and analysis. This can help you track your progress and identify areas for improvement. Seek external support: If needed, partner with consultants or service providers who can provide expertise and guidance on CSDDD compliance. They can help you develop a robust due diligence strategy and ensure you are meeting all the requirements. By taking a proactive and comprehensive approach to due diligence, companies can not only comply with the CSDDD but also enhance their reputation, build trust with stakeholders, and contribute to a more sustainable and equitable global economy.

Does CSDDD align with OECD guidelines?

This alignment ensures that the CSDDD is consistent with internationally recognized standards for responsible business conduct, providing legal certainty for businesses and stakeholders alike.

Why do we need CSDDD?

The Corporate Sustainability Due Diligence Directive (CSDDD) is essential to address the negative impacts of business activities on human rights and the environment. Voluntary measures have proven insufficient, making mandatory due diligence obligations necessary. The CSDDD aims to foster responsible business conduct by holding companies accountable for their actions throughout their value chains. It levels the playing field for businesses, preventing those prioritizing sustainability from being undercut by competitors with lower standards. By promoting responsible business practices, the CSDDD contributes to sustainable development and helps achieve the United Nations Sustainable Development Goals (SDGs), ensuring that businesses respect human rights, protect the environment, and contribute to a more sustainable and equitable future.