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CSDDD | Corporate Sustainability Due Diligence Directive

The EU Directive promoting sustainable global supply chains

(CSDDD) depicted with clean and intricate green lines, pla

“A growing number of companies is looking at their business models, purchasing practices, codes of conduct and contracts to ensure alignment with responsible business conduct norms.”​

Synopsis

The Corporate Sustainability Due Diligence Directive (CSDDD) is a European Union (EU) law aimed at promoting sustainable and responsible corporate behavior throughout global value chains. 

The primary purpose of the CSDDD is to mandate companies to conduct due diligence to identify, prevent, mitigate, and account for adverse human rights and environmental impacts in their operations, subsidiaries, and supply chains. This includes addressing issues such as forced labor, child labor, environmental degradation, and corruption. The directive seeks to foster sustainable and ethical practices by ensuring companies take responsibility for their entire value chain, from production to end-use. 

The target audience of the CSDDD includes large EU companies, as well as non-EU companies operating within the EU that meet specific thresholds in terms of employee numbers and turnover. It particularly focuses on high-impact sectors such as mining, agriculture, and textiles. Stakeholders include businesses, investors, civil society, and policymakers who prioritize sustainability and ethical corporate conduct. 

Obligations
Our CSDDD Obligations analysis shows you a complete overview of all obligations demanded by this directive, accompanied by the responsible party that carries the obligation. Furthermore, we identified additional levels of detail on the responsible parties as well as a topical classification of each obligation which helps you group tasks for dedicated teams of experts.

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Percent increase in overall business

847

Products sold during the ad campaign

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Raving reviews written since the launch

CSDDD Quickscan: Assess Your Readiness for Compliance

Stay ahead of the Corporate Sustainability Due Diligence Directive (CSDDD) with this streamlined checklist to ensure compliance and effective reporting.

1. Scope: Does the CSDDD apply to your organisation?

    • Confirm if CSDDD applies to your organisation, identify the reporting period and identify the associated obligations.
    • Assess based on your organisation’s size, turnover, and operational sectors.
    • Determine if your company is part of the value chain of a regulated entity.

2. Governance: Have you established due diligence governance structures?

    • Assign responsibility for CSDDD oversight to senior leadership.
    • Integrate sustainability and human rights topics into board-level discussions.

3. Risk Identification: Have you conducted risk assessments?

    • Map and assess actual and potential adverse human rights and environmental impacts across your value chain.
    • Use a risk-based approach to prioritize actions.

4. Policies and Strategies: Have you implemented a due diligence policy?

    • Ensure your policy outlines commitments to human rights and environmental protection.
    • Include mechanisms for continuous improvement.

5. Stakeholder Engagement: Are you engaging with stakeholders effectively?

    • Identify key stakeholders, including workers, communities, and business partners.
    • Maintain transparent and ongoing communication.

6. Mitigation and Prevention: Have you taken action to mitigate risks?

    • Develop and implement strategies to prevent or mitigate identified risks.
    • Collaborate with value chain partners to address shared challenges.

7. Grievance Mechanisms: Have you established grievance mechanisms?

    • Ensure accessible channels for stakeholders to report concerns.
    • Include procedures for timely response and resolution.

8. Monitoring and Evaluation: Are you tracking the effectiveness of your due diligence processes?

    • Implement monitoring systems to evaluate compliance and performance.
    • Regularly review and adjust processes based on findings.

9. Reporting: Are you meeting reporting obligations?

    • Publish an annual due diligence report detailing policies, actions, and outcomes.
    • Align with relevant reporting frameworks and legal requirements.

10. Improvement: Do you have a plan for continuous improvement?

    • Commit to regular reviews and updates of due diligence processes.
    • Engage in industry initiatives and collaborate for shared learning.

Results

  • Score your readiness: Assign a rating (e.g., 1-5) for each section.
  • Identify gaps: Highlight areas requiring attention and develop an action plan.

This quickscan offers a foundational overview. For detailed guidance and tailored support, explore our comprehensive CSDDD Obligation Report and advisory services.

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