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Corporate Sustainability Due Diligence Directive: Regulatory Snapshot

July 25, 2023

This piece was published before the beginning of 2024 when a provisional agreement on the CSDDD was reached and the directive was up for a scheduled vote. Since the Belgian Presidency has postponed the vote to an undetermined future date, the completion of the law is delayed. Our team is closely monitoring developments as the Member States discuss the agreement further — no doubt, environmental and human rights due diligence is and will remain a legislative priority.

If you would like to find out more about our work in this area, or wider sustainable procurement strategy, execution and action, then get in touch.

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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