Corporate Sustainability Due Diligence Directive: Regulatory Snapshot

July 25, 2023

After a lengthy and unusual period of intense negotiations, the EU member states have finally voted in favor of the CSDDD. The tight vote on March 15 came just in time to pave the way for the directive to be adopted before Parliamentary elections in June.

We recommend following our blog posts here over the next few weeks as we will provide more detailed assessments on the CSDDD.

Set to come into effect soon, the Corporate Sustainability Due Diligence Directive (CSDDD or CS3D) requires corporations to meticulously evaluate the sustainability footprint of their products or services. This directive aims to identify and manage sustainability risks within their operations and supply chains. If, upon examination, a corporation uncovers notable sustainability risks, it must formulate an action plan to tackle these issues. Moreover, the directive imposes a reporting obligation, mandating companies to submit a declaration that they have conducted thorough supply chain due diligence to uphold sustainability.

EcoVadis Sustainability Intelligence Suite, backed by experience with regulatory due diligence requirements, such as the CSDDD, Corporate Sustainability Reporting Directive (CSRD), the French Devoir de Vigilance, or the UK Modern Slavery Act, provides a holistic approach to addressing ESG risk and compliance requirements in the supply chain. This snapshot delivers a straightforward guide to how it can support corporations in meeting the specific demands delineated in the Corporate Sustainability Due Diligence Directive.

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Companies Being Rated (Suppliers)

Featured Content

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EU's CSDDD, Germany's LkSG and similar laws will reshape the playing field for global business. With the right approach, companies can comply and boost supply chains ESG performance and resilience..