This month, the EU Council adopted its negotiating position on the Corporate Sustainability Due Diligence Directive(#CSDDD). We’ve seen mixed reactions to the Council’s proposed amendments, which (among others) include the below changes:
🏬 A phase-in approach, so that initially, the law would only apply to very large companies with more than 1,000 employees and net turnover of EUR 300 million.
🔗 Clarifying that the CSDDD shall apply to a company’s “chain of activities” limiting its application on downstream business partners.
🚨 Strengthening of the CSDDD’s risk-based approach.
⚖️ Clarifying the civil liability conditions, which provide full compensation for damages resulting from a company not complying with its due diligence obligations.
While this completes the negotiations in the Council, the European Parliament is still debating a variety of positions – once completed, the Council, Commission and Parliament can start negotiating the final text of the CSDDD (all eyes on you, 2023 👀)!
But regardless of the small print, momentum is building internationally for legally binding instruments that regulate the activities of transnational corporations. Therefore, while the finer details are being hashed out, businesses need to adopt their approach, ideally using the #UNGPs and #OECD framework as a guiding star. This requires an integrated corporate strategy on human rights and the environment and the adoption of tools that allow for a risk-based approach.
Our platform,diginexLUMEN, is powering a new era of scalable supply chain due diligence,allowing companies to onboard and risk-assess an unlimited number of suppliers across all #ESG topics for a flat annual fee, starting at just $3K USD!
So regardless of what the finer details will hold – act now on what we know is certainly coming and get your business ready!