✨ Exciting news! 🌍The EU's European Commission CSDDD (The Corporate Sustainability Due Diligence Directive) has just been published in EU’s Official Journal and will enter into force in 20 days. >>> Here's what you need to know <<< ▪ PURPOSE: introduces obligations for large companies in integrating corporate accountability with environmental and social governance. ▪ SCOPE: - Large companies >1000 employees and >EUR 450 million turnover (net) worldwide. - Activities of subsidiaries and partners along their supply chains. ▪ DUE DILIGENCE: Companies must now prevent and mitigate adverse impacts on human rights and the environment within their operations and supply chains. ▪ TRANSPARENCY & REPORTING: Enhanced reporting requirements aim to boost accountability and inform stakeholders about corporate sustainability efforts. ▪ LEGAL FRAMEWORK: Introduces legal liabilities for non-compliance, with national authorities empowered to enforce regulations. ▪ SUPPORT FOR SMEs: Although not directly covered, SMEs in the value chains of larger companies will receive guidance to meet new standards. ❕ NEXT STEPS: Expected to be transposed into national law until 2026 and reporting starts in 2028. The #CSDDD sets a robust standard for sustainable corporate practices, poised to transform the European business landscape and potentially serve as a global benchmark. As the #WesternBalkans become increasingly integrated into EU supply chains, businesses in the region will be affected. Stay tuned to be informed about how these developments may impact your business. https://lnkd.in/eFBa2cWT #GecićLaw #CSDDD #Sustainability #CorporateGovernance #EURegulations #EuropeanCommission
Gecić | Law’s Post
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🔹NEWS OVERNIGHT: EU Parliament Approves CSDDD On April 24, 2024, the European Parliament passed the Corporate Sustainability Due Diligence Directive (CSDDD). 🔹 What is the CSDDD? The CSDDD mandates large EU and non-EU companies to conduct due diligence on human rights and environmental impacts within their operations and those of their business partners. 🔹 Next Steps and Preparation: Following final approvals in May, EU nations will incorporate the CSDDD into national law, effective from 2027. Companies should prepare by following upcoming guidance from the European Commission and updating their due diligence practices. 🔹Key Requirements of the CSDDD: - Timing: Implementation will phase in over 3 to 5 years based on company size and turnover. - Scope: Applies to EU companies with over 1,000 employees and €450 million turnover, and non-EU companies with €450 million turnover in the EU. - Chain of Activities: Includes upstream activities and certain downstream activities, except disposal. Different rules apply to financial undertakings. - Stakeholder Engagement: Requires extensive engagement beyond traditional industry initiatives. - Enforcement and Liability: National authorities will monitor compliance and can impose sanctions. Companies can be held liable for damages caused by non-compliance. This directive represents a significant move towards ensuring corporate accountability for environmental and human rights impacts across the EU.
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🔔 BREAKING: Friday 24 May the EU member states approved the final adoption of the EU Corporate Sustainability Due Diligence Directive (CSDDD). 📕 This vote completes the adoption of this groundbreaking law - arguably the most significant policy development in our space since the adoption of the UN Guiding Principles. #transparency #traceability #authenticity #sustainability #DueDiligence
🔔 BREAKING: EU member states approved the final adoption of the EU Corporate Sustainability Due Diligence Directive #CSDDD, during #COMPET Council. ⚡ After an eventful few last months, this vote completes the adoption of this groundbreaking law - arguably the most significant policy development in our space since the adoption of the UN Guiding Principles. 📃 Final text: lnkd.in/eYA75UvW 🚥 17 EU member states approved the law, no member state voted against CSDDD, 10 member states abstained. 📅 Expectedly in about 6 weeks, the law will be published in the EU journal. 📌 CSDDD will enter into force on the 20th day following publication... that's when the journey starts: 👉 EU member states have 2 years to transpose CSDDD into national law. It'll be key to watch whether (and how) member states tranpose CSDDD 1:1 - or expand the requirements. 👉 European Commission will prepare implementation, incl. by delivering accompanying measures & guidance. These will determine key aspects of the law: stakes are high, expect intensive stakeholder engagement. 👉 Large companies will have - depending on their size - 3 to 5 years to prepare compliance. For most companies, a daunting task: enhancing due diligence systems, aligning standards with CSDDD's thematic scope, scaling due diligence to cover the value chain more widely, training suppliers, and enhancing stakeholder engagement. 👉 But most important... EU governments themselves will have to step up their game. As they place unprecented expectations on industry, the EU & member states need to match that with equal ambition in fulfilling their own duties to enable responsible supply chains. ❓ 🧠 Recent events hosted by RBA with EU institutions shed light on some key questions: 👉 𝐃𝐨𝐞𝐬 𝐂𝐒𝐃𝐃𝐃 𝐦𝐚𝐫𝐤 𝐭𝐡𝐞 𝐬𝐭𝐚𝐫𝐭 𝐨𝐟 𝐚 𝐧𝐞𝐰 𝐞𝐫𝐚? There seems near consensus that 𝐘𝐄𝐒, CSDDD is an absolute game-changer, despite recent concessions. 👉 𝐖𝐢𝐥𝐥 𝐭𝐡𝐢𝐬 𝐜𝐫𝐞𝐚𝐭𝐞 𝐚𝐧𝐨𝐭𝐡𝐞𝐫 𝐜𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐞𝐱𝐞𝐫𝐜𝐢𝐬𝐞 𝐰𝐢𝐭𝐡𝐨𝐮𝐭 𝐭𝐚𝐧𝐠𝐢𝐛𝐥𝐞 𝐢𝐦𝐩𝐚𝐜𝐭 𝐨𝐧 𝐭𝐡𝐞 𝐠𝐫𝐨𝐮𝐧𝐝? Time will tell. But in my opinion, likely this will be how companies choose it to be. CSDDD incentivizes risk-based, meaningful due diligence that includes & benefits rights holders. If companies genuinely commit to its spirit, I expect positive impact. 👉 𝐖𝐢𝐥𝐥 𝐂𝐒𝐃𝐃𝐃 𝐬𝐨𝐥𝐯𝐞 𝐚𝐥𝐥 𝐭𝐡𝐚𝐭'𝐬 𝐰𝐫𝐨𝐧𝐠 𝐢𝐧 𝐠𝐥𝐨𝐛𝐚𝐥 𝐬𝐮𝐩𝐩𝐥𝐲 𝐜𝐡𝐚𝐢𝐧𝐬? No. 👉𝐂𝐚𝐧 𝐜𝐨𝐦𝐩𝐚𝐧𝐢𝐞𝐬 𝐝𝐨 𝐭𝐡𝐢𝐬 𝐨𝐧 𝐭𝐡𝐞𝐢𝐫 𝐨𝐰𝐧? No (CSDDD is far too ambitious for that). 𝐖𝐢𝐥𝐥 𝐭𝐡𝐞𝐲 𝐡𝐚𝐯𝐞 𝐭𝐨? No. CSDDD mandates collaborative approaches. 👉 𝐀𝐫𝐞 𝐜𝐨𝐦𝐩𝐚𝐧𝐢𝐞𝐬 𝐩𝐚𝐧𝐢𝐜𝐤𝐢𝐧𝐠? Having had the chance to work on CSDDD readiness with companies globally, I see a split landscape, with a good half of industry feeling confident that they are on track; the other half - genuinely worried.
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The day has come 💥 Last week, the EU's Corporate Sustainability Due Diligence Directive officially came into force, marking a significant step towards responsible business practices for both EU and non-EU companies. Why is #CSDDD so important? 🌱 Ensures a just transition to a sustainable economy; 🌱 Responds to the call for mandatory due diligence rules from a broad range of stakeholders; 🌱 Aims to overcome challenges like the complexity of global value chains and fragmented national rules; 🌱 Promotes a level playing field across the EU Single Market, fostering #innovation, competitiveness, and legal certainty. What are the next steps? 🌱 Member States have to transpose the Directive into national law and communicate the relevant texts to the Commission by 26 July 2026; 🌱 One year later, the rules will start to apply to the first group of companies, following a staggered approach (with full application on 26 July 2029); 🌱 Request our guide on how to navigate the new regulation. For more information on how to navigate the new requirements and ensure #compliance, request our guide and check the official communication from the EU Commission. Link in the comments below 👇 #EURegulations #Sustainability
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Human Rights in SupplyChains, Enviro Social Sustainability, HREDD, ESG 20+yrs experience, 11 in China. Guide, Train, Assess for Impact, Change, SDGs. Fet'd UN PRI, Cambridge Ins Sustainability Leadership, etc
The EU CSDDD Corporate Sustainability due diligence directive has finally passed. A link to the text below, and thoughts from Bart who works with mostly large Tech and Auto firms through the RBA. Good to see this clearer business human rights due diligence guidance finally made law to balance the playing field by outlining how firms can and should help deliver needed fairer, inclusive, and cleaner supply chains, and our just clean transition. #humanrights #CSDDD
🔔 BREAKING: EU member states approved the final adoption of the EU Corporate Sustainability Due Diligence Directive #CSDDD, during #COMPET Council. ⚡ After an eventful few last months, this vote completes the adoption of this groundbreaking law - arguably the most significant policy development in our space since the adoption of the UN Guiding Principles. 📃 Final text: lnkd.in/eYA75UvW 🚥 17 EU member states approved the law, no member state voted against CSDDD, 10 member states abstained. 📅 Expectedly in about 6 weeks, the law will be published in the EU journal. 📌 CSDDD will enter into force on the 20th day following publication... that's when the journey starts: 👉 EU member states have 2 years to transpose CSDDD into national law. It'll be key to watch whether (and how) member states tranpose CSDDD 1:1 - or expand the requirements. 👉 European Commission will prepare implementation, incl. by delivering accompanying measures & guidance. These will determine key aspects of the law: stakes are high, expect intensive stakeholder engagement. 👉 Large companies will have - depending on their size - 3 to 5 years to prepare compliance. For most companies, a daunting task: enhancing due diligence systems, aligning standards with CSDDD's thematic scope, scaling due diligence to cover the value chain more widely, training suppliers, and enhancing stakeholder engagement. 👉 But most important... EU governments themselves will have to step up their game. As they place unprecented expectations on industry, the EU & member states need to match that with equal ambition in fulfilling their own duties to enable responsible supply chains. ❓ 🧠 Recent events hosted by RBA with EU institutions shed light on some key questions: 👉 𝐃𝐨𝐞𝐬 𝐂𝐒𝐃𝐃𝐃 𝐦𝐚𝐫𝐤 𝐭𝐡𝐞 𝐬𝐭𝐚𝐫𝐭 𝐨𝐟 𝐚 𝐧𝐞𝐰 𝐞𝐫𝐚? There seems near consensus that 𝐘𝐄𝐒, CSDDD is an absolute game-changer, despite recent concessions. 👉 𝐖𝐢𝐥𝐥 𝐭𝐡𝐢𝐬 𝐜𝐫𝐞𝐚𝐭𝐞 𝐚𝐧𝐨𝐭𝐡𝐞𝐫 𝐜𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐞𝐱𝐞𝐫𝐜𝐢𝐬𝐞 𝐰𝐢𝐭𝐡𝐨𝐮𝐭 𝐭𝐚𝐧𝐠𝐢𝐛𝐥𝐞 𝐢𝐦𝐩𝐚𝐜𝐭 𝐨𝐧 𝐭𝐡𝐞 𝐠𝐫𝐨𝐮𝐧𝐝? Time will tell. But in my opinion, likely this will be how companies choose it to be. CSDDD incentivizes risk-based, meaningful due diligence that includes & benefits rights holders. If companies genuinely commit to its spirit, I expect positive impact. 👉 𝐖𝐢𝐥𝐥 𝐂𝐒𝐃𝐃𝐃 𝐬𝐨𝐥𝐯𝐞 𝐚𝐥𝐥 𝐭𝐡𝐚𝐭'𝐬 𝐰𝐫𝐨𝐧𝐠 𝐢𝐧 𝐠𝐥𝐨𝐛𝐚𝐥 𝐬𝐮𝐩𝐩𝐥𝐲 𝐜𝐡𝐚𝐢𝐧𝐬? No. 👉𝐂𝐚𝐧 𝐜𝐨𝐦𝐩𝐚𝐧𝐢𝐞𝐬 𝐝𝐨 𝐭𝐡𝐢𝐬 𝐨𝐧 𝐭𝐡𝐞𝐢𝐫 𝐨𝐰𝐧? No (CSDDD is far too ambitious for that). 𝐖𝐢𝐥𝐥 𝐭𝐡𝐞𝐲 𝐡𝐚𝐯𝐞 𝐭𝐨? No. CSDDD mandates collaborative approaches. 👉 𝐀𝐫𝐞 𝐜𝐨𝐦𝐩𝐚𝐧𝐢𝐞𝐬 𝐩𝐚𝐧𝐢𝐜𝐤𝐢𝐧𝐠? Having had the chance to work on CSDDD readiness with companies globally, I see a split landscape, with a good half of industry feeling confident that they are on track; the other half - genuinely worried.
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Citizen of the World | Empowering Climate Action | Social Impact | ESG | Start Ups | Innovation | DoGooder
➡ The EU member states have officially approved the EU Corporate Sustainability Due Diligence Directive (CSDDD) during the COMPET Council meeting, marking a significant milestone in sustainability policy. ➡ Following several eventful months, this vote finalizes the adoption of the CSDDD, a law that could be the most transformative policy development since the UN Guiding Principles. 📑 Final text: [Read here](https://lnkd.in/eYA75UvW) Approval Summary: - 17 EU member states approved the law. - No member state voted against CSDDD. - 10 member states abstained. Timeline: - The law will be published in the EU journal in about 6 weeks. - CSDDD will enter into force on the 20th day following publication. - EU member states have 2 years to transpose CSDDD into national law. - Large companies will have 3 to 5 years to prepare for compliance. ⭐ Key Points: - Collaborative Approach: CSDDD mandates collaborative approaches rather than companies working alone. - Readiness: Companies are divided, with some feeling confident and others genuinely worried about compliance. Is your company ready to effectively engage with all stakeholders to magnify the impact of your organization and reach your lofty ESG goals? At DoGood, we empower employees to take an active role in driving sustainability, helping to galvanize your workforce and supercharge your ESG initiatives' impact. By engaging employees at every level, we ensure that your company meets and exceeds these new regulatory requirements, while reducing greenwashing and improving client facing. #Sustainability #CSDDD #ESG #CorporateResponsibility #SustainableBusiness #EURegulations #DoGood #EnvironmentalImpact
🔔 BREAKING: EU member states approved the final adoption of the EU Corporate Sustainability Due Diligence Directive #CSDDD, during #COMPET Council. ⚡ After an eventful few last months, this vote completes the adoption of this groundbreaking law - arguably the most significant policy development in our space since the adoption of the UN Guiding Principles. 📃 Final text: lnkd.in/eYA75UvW 🚥 17 EU member states approved the law, no member state voted against CSDDD, 10 member states abstained. 📅 Expectedly in about 6 weeks, the law will be published in the EU journal. 📌 CSDDD will enter into force on the 20th day following publication... that's when the journey starts: 👉 EU member states have 2 years to transpose CSDDD into national law. It'll be key to watch whether (and how) member states tranpose CSDDD 1:1 - or expand the requirements. 👉 European Commission will prepare implementation, incl. by delivering accompanying measures & guidance. These will determine key aspects of the law: stakes are high, expect intensive stakeholder engagement. 👉 Large companies will have - depending on their size - 3 to 5 years to prepare compliance. For most companies, a daunting task: enhancing due diligence systems, aligning standards with CSDDD's thematic scope, scaling due diligence to cover the value chain more widely, training suppliers, and enhancing stakeholder engagement. 👉 But most important... EU governments themselves will have to step up their game. As they place unprecented expectations on industry, the EU & member states need to match that with equal ambition in fulfilling their own duties to enable responsible supply chains. ❓ 🧠 Recent events hosted by RBA with EU institutions shed light on some key questions: 👉 𝐃𝐨𝐞𝐬 𝐂𝐒𝐃𝐃𝐃 𝐦𝐚𝐫𝐤 𝐭𝐡𝐞 𝐬𝐭𝐚𝐫𝐭 𝐨𝐟 𝐚 𝐧𝐞𝐰 𝐞𝐫𝐚? There seems near consensus that 𝐘𝐄𝐒, CSDDD is an absolute game-changer, despite recent concessions. 👉 𝐖𝐢𝐥𝐥 𝐭𝐡𝐢𝐬 𝐜𝐫𝐞𝐚𝐭𝐞 𝐚𝐧𝐨𝐭𝐡𝐞𝐫 𝐜𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐞𝐱𝐞𝐫𝐜𝐢𝐬𝐞 𝐰𝐢𝐭𝐡𝐨𝐮𝐭 𝐭𝐚𝐧𝐠𝐢𝐛𝐥𝐞 𝐢𝐦𝐩𝐚𝐜𝐭 𝐨𝐧 𝐭𝐡𝐞 𝐠𝐫𝐨𝐮𝐧𝐝? Time will tell. But in my opinion, likely this will be how companies choose it to be. CSDDD incentivizes risk-based, meaningful due diligence that includes & benefits rights holders. If companies genuinely commit to its spirit, I expect positive impact. 👉 𝐖𝐢𝐥𝐥 𝐂𝐒𝐃𝐃𝐃 𝐬𝐨𝐥𝐯𝐞 𝐚𝐥𝐥 𝐭𝐡𝐚𝐭'𝐬 𝐰𝐫𝐨𝐧𝐠 𝐢𝐧 𝐠𝐥𝐨𝐛𝐚𝐥 𝐬𝐮𝐩𝐩𝐥𝐲 𝐜𝐡𝐚𝐢𝐧𝐬? No. 👉𝐂𝐚𝐧 𝐜𝐨𝐦𝐩𝐚𝐧𝐢𝐞𝐬 𝐝𝐨 𝐭𝐡𝐢𝐬 𝐨𝐧 𝐭𝐡𝐞𝐢𝐫 𝐨𝐰𝐧? No (CSDDD is far too ambitious for that). 𝐖𝐢𝐥𝐥 𝐭𝐡𝐞𝐲 𝐡𝐚𝐯𝐞 𝐭𝐨? No. CSDDD mandates collaborative approaches. 👉 𝐀𝐫𝐞 𝐜𝐨𝐦𝐩𝐚𝐧𝐢𝐞𝐬 𝐩𝐚𝐧𝐢𝐜𝐤𝐢𝐧𝐠? Having had the chance to work on CSDDD readiness with companies globally, I see a split landscape, with a good half of industry feeling confident that they are on track; the other half - genuinely worried.
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Partner Portolano Cavallo | Investigations, White Collar Crime, Compliance, Crisis management | Supervisory board member
🔔No more doubts, EU member states have just approved the #CSDDD. ‼️Although implementation in member states is not imminent, the focus on supply chain due diligence is high in Italy where we are seeing #monitorship orders for cases of labour exploitation facilitated by lack of proper controls on suppliers #esg #supplychainduediligence
🔔 BREAKING: EU member states approved the final adoption of the EU Corporate Sustainability Due Diligence Directive #CSDDD, during #COMPET Council. ⚡ After an eventful few last months, this vote completes the adoption of this groundbreaking law - arguably the most significant policy development in our space since the adoption of the UN Guiding Principles. 📃 Final text: lnkd.in/eYA75UvW 🚥 17 EU member states approved the law, no member state voted against CSDDD, 10 member states abstained. 📅 Expectedly in about 6 weeks, the law will be published in the EU journal. 📌 CSDDD will enter into force on the 20th day following publication... that's when the journey starts: 👉 EU member states have 2 years to transpose CSDDD into national law. It'll be key to watch whether (and how) member states tranpose CSDDD 1:1 - or expand the requirements. 👉 European Commission will prepare implementation, incl. by delivering accompanying measures & guidance. These will determine key aspects of the law: stakes are high, expect intensive stakeholder engagement. 👉 Large companies will have - depending on their size - 3 to 5 years to prepare compliance. For most companies, a daunting task: enhancing due diligence systems, aligning standards with CSDDD's thematic scope, scaling due diligence to cover the value chain more widely, training suppliers, and enhancing stakeholder engagement. 👉 But most important... EU governments themselves will have to step up their game. As they place unprecented expectations on industry, the EU & member states need to match that with equal ambition in fulfilling their own duties to enable responsible supply chains. ❓ 🧠 Recent events hosted by RBA with EU institutions shed light on some key questions: 👉 𝐃𝐨𝐞𝐬 𝐂𝐒𝐃𝐃𝐃 𝐦𝐚𝐫𝐤 𝐭𝐡𝐞 𝐬𝐭𝐚𝐫𝐭 𝐨𝐟 𝐚 𝐧𝐞𝐰 𝐞𝐫𝐚? There seems near consensus that 𝐘𝐄𝐒, CSDDD is an absolute game-changer, despite recent concessions. 👉 𝐖𝐢𝐥𝐥 𝐭𝐡𝐢𝐬 𝐜𝐫𝐞𝐚𝐭𝐞 𝐚𝐧𝐨𝐭𝐡𝐞𝐫 𝐜𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐞𝐱𝐞𝐫𝐜𝐢𝐬𝐞 𝐰𝐢𝐭𝐡𝐨𝐮𝐭 𝐭𝐚𝐧𝐠𝐢𝐛𝐥𝐞 𝐢𝐦𝐩𝐚𝐜𝐭 𝐨𝐧 𝐭𝐡𝐞 𝐠𝐫𝐨𝐮𝐧𝐝? Time will tell. But in my opinion, likely this will be how companies choose it to be. CSDDD incentivizes risk-based, meaningful due diligence that includes & benefits rights holders. If companies genuinely commit to its spirit, I expect positive impact. 👉 𝐖𝐢𝐥𝐥 𝐂𝐒𝐃𝐃𝐃 𝐬𝐨𝐥𝐯𝐞 𝐚𝐥𝐥 𝐭𝐡𝐚𝐭'𝐬 𝐰𝐫𝐨𝐧𝐠 𝐢𝐧 𝐠𝐥𝐨𝐛𝐚𝐥 𝐬𝐮𝐩𝐩𝐥𝐲 𝐜𝐡𝐚𝐢𝐧𝐬? No. 👉𝐂𝐚𝐧 𝐜𝐨𝐦𝐩𝐚𝐧𝐢𝐞𝐬 𝐝𝐨 𝐭𝐡𝐢𝐬 𝐨𝐧 𝐭𝐡𝐞𝐢𝐫 𝐨𝐰𝐧? No (CSDDD is far too ambitious for that). 𝐖𝐢𝐥𝐥 𝐭𝐡𝐞𝐲 𝐡𝐚𝐯𝐞 𝐭𝐨? No. CSDDD mandates collaborative approaches. 👉 𝐀𝐫𝐞 𝐜𝐨𝐦𝐩𝐚𝐧𝐢𝐞𝐬 𝐩𝐚𝐧𝐢𝐜𝐤𝐢𝐧𝐠? Having had the chance to work on CSDDD readiness with companies globally, I see a split landscape, with a good half of industry feeling confident that they are on track; the other half - genuinely worried.
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💡 🖋 Fresh out of the press: Together with Dirk Zetzsche, I had a closer look at the EU's Corporate Sustainability Due Diligence Directive (CSDDD) that has been passed in March 2024 by the Council of the EU and has been finally revised last month by the European Parliament. We expect the CSDDD's publication in the Official Journal soon. The CSDDD aims to reduce negative sustainability impacts in global supply chains with regard to a list of human rights and environmental standards. We find that the CSDDD is a legal transplant combining the principles laid down in the OECD Guidelines for Multinational Enterprises on Responsible Business and those of the UN Guiding Principles on Business and Human Rights, along with elements of French supply chain legislation from 2017, the so-called "Loi de vigilance" relying on a private enforcement model, and the German supply chain law ("Lieferkettensorgfaltspflichtengesetz") from 2021 that is based on a public enforcement model. Like all legal transplants, the resulting legal text generally prompts questions about consistency and specifically raises doubts as to whether combining all of the components of a private and a public enforcement model is adequate to counter violations of human rights and environmental standards in global supply chains effectively. We look forward to receiving your feedback on our paper and hope you enjoy the read! 😊 #sustainability #supplychains #duediligence
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Exciting developments are on the horizon in the EU's regulatory landscape! The Corporate Sustainability Due Diligence Directive (CS3D) is set to become law this year, bringing significant compliance requirements that will ripple across global supply chains. Here’s the scoop👇🏽 The CS3D introduces comprehensive due diligence requirements focused on human rights and environmental impacts. These rules will apply to business operations, subsidiaries, and certain partners. Companies will need to proactively address adverse impacts and meet new obligations related to contracting and investments. Starting in 2027, the directive will phase in its requirements. It will apply to EU companies with over 1000 employees and a net worldwide turnover exceeding €450 million. Non-EU companies will also be affected if their net EU turnover surpasses €450 million. However, financial market participants like sponsors and investors will face reduced requirements, with downstream activities such as investing and lending being exempt. One of the major changes involves developing a robust, risk-based due diligence strategy. This means updating policies, conducting ongoing risk assessments, creating action plans, and revising contracts with business partners. Additionally, companies will need to set up notification mechanisms and complaints procedures. Another key requirement is to adopt a transition plan that aligns business models with the Paris Agreement’s goal of limiting global warming to 1.5°C. This plan should include specific targets and details about supporting investments. Enforcement will be stringent. Regulators will have the authority to request information and carry out investigations based on complaints from NGOs and third parties. Penalties for non-compliance could include fines of up to 5% of net worldwide turnover and public statements on findings. The directive makes it easier for claimants (including NGOs and trade unions) to seek damages or injunctive relief. The implications of CS3D will be felt globally. The European Commission is tasked with reviewing the need for additional due diligence requirements for the financial sector within two years of the directive’s adoption. Companies worldwide that trade with in-scope businesses should be prepared to demonstrate compliance with human rights and environmental standards, potentially through contractual assurances. Stay ahead by preparing for these new requirements and understanding their far-reaching impacts 🌐 #PrivateEquity #Sustainability #DueDiligence #CS3D #Regulations #EnvironmentalImpact #HumanRights #EUCompliance #GlobalBusiness
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📣 Today, the European Parliament voted in plenary to endorse the EU Corporate Sustainability Due Diligence Directive (#CSDDD)! The directive aims to promote sustainable and responsible corporate behaviour by obligating companies to account for human rights and environmental considerations in their operations and governance. The new law requires businesses to address the adverse impacts of their actions, including those in their supply chains inside and outside Europe. This marks the final step of the long-awaited directive before its formal adoption, expected in May. Despite some disappointment over its dilution, the directive represents crucial progress in protecting human rights and the environment and providing access to justice for the victims of corporate harm. 🚨 Corporate lobbying efforts are already in full swing as companies aim to further water down the directive as it is transposed into national laws. ✊ Over the next two years, SOMO will advocate for member states to transpose the directive into ambitious national laws that align with international standards. See our explainer below for all you need to know about the CSDDD! 👇 Map source: SOMO, including data from BVD Orbis. #ResponsibleBusinessConduct #RBC #BusinessAndHumanRights #DueDiligence #CSR #CorporateSocialResponsibility #CorporateJustice
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EU DUE DILIGENCE DIRECTIVE EXPLAINED! This excellent short and visual explanation of what has been approved today by the European Parliament is worth a look and can be shared with those who have not followed the whole five year saga. For the banana world and for big retail this binding legislation will help raise the standard for all. It gives all the positive commitments to living wages and more sustainable production systems a boost.
📣 Today, the European Parliament voted in plenary to endorse the EU Corporate Sustainability Due Diligence Directive (#CSDDD)! The directive aims to promote sustainable and responsible corporate behaviour by obligating companies to account for human rights and environmental considerations in their operations and governance. The new law requires businesses to address the adverse impacts of their actions, including those in their supply chains inside and outside Europe. This marks the final step of the long-awaited directive before its formal adoption, expected in May. Despite some disappointment over its dilution, the directive represents crucial progress in protecting human rights and the environment and providing access to justice for the victims of corporate harm. 🚨 Corporate lobbying efforts are already in full swing as companies aim to further water down the directive as it is transposed into national laws. ✊ Over the next two years, SOMO will advocate for member states to transpose the directive into ambitious national laws that align with international standards. See our explainer below for all you need to know about the CSDDD! 👇 Map source: SOMO, including data from BVD Orbis. #ResponsibleBusinessConduct #RBC #BusinessAndHumanRights #DueDiligence #CSR #CorporateSocialResponsibility #CorporateJustice
