Implementation of the new supply chain law (CSDDD)

The Corporate Sustainability Due Diligence Directive (CSDDD) is a significant step by the EU to strengthen corporate responsibility for sustainability and human rights in global supply chains. With the directive coming into force on July 25, 2024 and staggered implementation until 2029, companies are faced with the task of aligning their business models and supply chains with the new requirements.

The CSDDD obliges companies to analyze not only their direct business activities, but also those of their suppliers and subcontractors, to identify risks and to take preventive and corrective measures. The following are particularly challenging:

• Supply chain complexity: many companies have globally ramified supply chains that require comprehensive transparency and cooperation.

• Legal and sector diversity: Differences between EU member states and sector-specific challenges increase the complexity of implementation.

• Data management: Setting up mechanisms for data collection, analysis and reporting places high demands on resources and technology.

• Risk management: The identification and assessment of human rights and environmental risks requires specialized expertise.

• Cultural and organizational adjustments: Sustainability must be integrated into the corporate culture to ensure effective implementation.

The willingness of European companies to take responsibility for sustainable business practices is a positive signal at a time when social and regulatory expectations are constantly increasing. Despite the challenges posed by the implementation of the Corporate Sustainability Due Diligence Directive (CSDDD), it is clear that many companies recognize their responsibility and are actively taking steps.

Guidance documents can play a decisive role in supporting companies in implementing the Corporate Sustainability Due Diligence Directive (CSDDD). They should be practical, target group-oriented and modular in order to provide companies with concrete action steps, regardless of their size or sector.