The CSDDD (Corporate Sustainability Due Diligence Directive; "EU Supply Chain Act") obliges companies to avoid, mitigate or end negative impacts on human rights and the environment through their value chain. The new regulation is intended to support and complement the objectives of the Green Deal and the United Nations Sustainable Development Goals.

 

The EU member states are obliged to adopt and publish the necessary regulations within two years of the directive coming into force.

 

The most important aspects are

• Thorough due diligence of suppliers to ensure that they fulfil EU sustainability standards.

• Implementation of sustainable procurement practices to reduce environmental damage and promote social welfare.

• Regular reporting and monitoring of supply chain practices to ensure continuous compliance and improvement.