FEATURE their carbon footprint and impact on human rights and labour laws , the CSDDD was developed to ensure that EU and non-EU companies take responsibility for the adverse impacts of their activities . Its mission was to create an EU standard and to emphasise due diligence strategies for companies to implement on human rights and environmental issues .
So , what happened ?
The legislation began its mission in 2020 with studies by the EC on sustainable corporate governance and due diligence requirements in the supply chain . This led to the commission ’ s proposed CSDDD draft in February 2022 .
Proposal . The companies in scope of the CSDDD would be required to conduct human rights and environmental due diligence by carrying out certain actions developed in line with prior OECD Guidance . These involved :
• integrating due diligence into company policies
• identifying actual or potential adverse impacts
• preventing and mitigating potential adverse impacts and ending actual adverse impacts or minimising their extent
• establishing and maintaining a complaints procedure
• monitoring the effectiveness of their due diligence policy and measures
• publicly communicating on due diligence
Naomi Grossman , Learning and Content Manager , VinciWorks
The plan was to require companies to implement certain processes throughout their value chains in line with ESG ( environmental , social , governance ) criteria . The European Parliament and the EU Council reviewed the CSDDD
A significant element of the directive was that the due diligence obligations did not just pertain to the company itself , but also to its subsidiaries and their operations and to operations carried out in the value chain . www . intelligentcxo . com
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