The EU Corporate Sustainability Due Diligence Directive

A guide for businesses


The Directive


Requirements of the Directive


Implications of non-compliance


How to prepare


Recent years have brought many challenges to supply chain management: from rising shipping and energy prices, to sourcing insecurity fuelled by conflict and geopolitics, all during a pandemic that has deeply affected businesses. Businesses have seen their capacity to respond to new crises weaken. These challenges have also hindered businesses’ ability to conduct effective due diligence on their supply chains.

In February 2022, a draft of the EU Corporate Sustainability Due Diligence Directive was published after much anticipation from investors, businesses and civil society. Although this might seem like another obligation for your business, it’s also an opportunity. Conducting thorough due diligence and building greater visibility of your supply chain can help to address and prevent risks, create resilience across your operations and supply chain, and prepare you to effectively deal with crises.

Enabling data collection systems on vulnerabilities and impacts allows for informed decision-making toward strategic sourcing realignment and enables greater capacity for responding to human rights and environmental issues when they occur. This also helps your business identify opportunities to become a force for good, driving positive social and environmental impact as part of your strategy and actions, which can positively impact your financial performance.

This guide explains how your business can prepare for the new EU Directive, expected to come into force from 2024 through national laws. It explains the key requirements of the Directive - guiding your business on the activities needed to meet them effectively - and it highlights how these activities build visibility in your operations and supply chain. This visibility is essential for navigating today’s disruptive world, and for ensuring that your overall strategy, policies, and practices are aligned with this Directive's requirements. At Sedex, we can help you prepare for whatever challenges come your way.

Mark Hooper

Commercial Director at Sedex

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