Week 6: CSDDD Unveiled, Charting the Course to Corporate Accountability and Sustainability

Dear all,

This week, we delve into the Corporate Sustainability Due Diligence Directive (CSDDD) and the power play behind the scenes. Initially, some aspects of these matters might leave anyone working with sustainability wondering if a transition to something more accountable is possible at all.

Reading between the lines, the anticipated EU regulation in this space has already made significant strides. Similar to the epic battle of Minas Tirith in the Lord of the Rings, dark forces seem to hold the upper hand in both numbers and cunning, making things less optimistic upon closer inspection. Dive in to learn more about the regulation that could potentially change the fundamentals of corporate accountability, having already done so in many cases, or potentially lock in any significant change.

The details are crucial, and you can find them here.

The CSDDD at a Glance 

Appropriate due diligence involves implementing six measures:

1. Policy: Implement a sustainability due diligence policy, integrate it into the organizational policy, and update it annually.

2. Identification: Identify negative consequences for human rights and the environment in one's own activities and throughout the chain.

3. Prevention and Minimization: Take appropriate measures to prevent, eliminate, or minimize these consequences.

4. Complaints Procedure: Offer the opportunity to submit complaints to the organization about negative consequences for human rights or the environment.

5. Monitoring: Conduct periodic evaluations of activities and mentioned measures.

6. Reporting: Make evaluation results public.

It sounded too good to be true from the beginning. It would have been a revolutionary change on the governance level concerning corporate accountability for environmental and human rights issues directly impacted by companies and throughout their supply chains. Since 2022, the European Union has been developing new regulations relating to the responsibilities of corporations for environmental and human rights concerns.