Understanding the Corporate Sustainability Due Diligence Directive (CSDDD)
As a company, it’s no longer possible to overlook human rights abuses or environmental violations within your supply chains. The Corporate Sustainability Due Diligence Directive (CSDDD), also known as the European supply chain due diligence law, places direct responsibility on large companies for pollution and exploitation across their production networks. This legislation mandates companies to take proactive steps to address and prevent negative impacts, ensuring accountability for both social and environmental standards throughout their value chain.
The most important aspects of CSDDD:
The most important aspects of CSDDD:
Due Diligence Policy Implementation
Companies must integrate due diligence into core policies and procedures, establishing a framework to systematically address human rights and environmental risks.
Risk Identification and Assessment
Organizations must actively identify and assess risks to human rights and the environment across their value chain, including analyzing suppliers and operations to mitigate these risks.
Supply Chain Involvement
The directive requires improvements in both direct operations and the entire supply chain, including upstream and downstream. Companies must monitor impacts at every stage, from raw material sourcing to product distribution.
Complaint Mechanism
A formal grievance mechanism must be available for individuals or organizations to report concerns about actual or potential adverse impacts, providing stakeholders with a platform to voice concerns and seek remediation.
Regular Monitoring and Evaluationcs
The CSDDD requires companies to conduct periodic audits to evaluate the effectiveness of due diligence measures and make adjustments or improvements if current measures are
ineffective.
Sharing lessons learned
Companies must implement measures to prevent and minimize negative impacts, including contractual clauses, training programs, and, when needed, providing remedies or compensation to affected parties.
ImpactBuying and the CSDDD: Responsibility in the Value Chain
At ImpactBuying, we understand the critical role businesses play in ensuring sustainability and ethical practices across their value chains. The Corporate Sustainability Due Diligence Directive (CSDDD) provides essential legislation to help companies systematically address human rights and environmental issues, both within their own operations and with their suppliers.
As a company committed to transparency and accountability, ImpactBuying supports businesses in complying with the CSDDD. We assist companies in implementing due diligence processes, identifying risks, and finding effective solutions to prevent and mitigate negative impacts on human rights and the environment. By leveraging our expertise and tools, companies can confidently meet the requirements of the CSDDD and contribute to a more sustainable future.