CSDDD – Standardised EU supply chain law instead of a patchwork of national regulations

On 15 March 2024, the European Corporate Sustainability Due Diligence Directive – CSDDD for short, or sometimes referred to as “CS Triple D” – was adopted in the EU. This regulation creates a framework for the global protection of the environment and human rights along the supply chain in the European single market. Although relatively few companies are currently affected, it is important to start preparing for implementation now.    

Decision after long debate  

After some turbulence in recent weeks, EU member states have adopted the new version of the directive on corporate sustainability due diligence. In December, MEPs and government members reached a provisional agreement on the Corporate Sustainability Due Diligence Directive (CSDDD). However, Germany and Italy threw a spanner in the works at the last minute. The EU Council has now given the green light to a watered-down version of the CSDDD.    

Shared responsibility – stronger together  

Even if it is only a watered-down version of the original regulation, it is important that it is implemented now. It sends a clear signal: together for human rights, sustainability and environmental protection. It creates certainty by avoiding the chaos of individual national regulations. The EU Regulation on Sustainable Supply Chains sets the framework within which companies can operate in the EU.  

Companies currently affected by the regulation  

Compared to the December draft, only around 70% of companies in Europe are now affected by the CSDDD. Here are the changes: The turnover threshold for covered companies has been raised from €150 million to €450 million and the employee threshold from 500 to 1000. Around 5,500 companies in the EU will be affected and will have to carry out a comprehensive risk-based review of their entire supply chain. Initially, companies with more than 5,000 employees and an annual turnover of €1,500 million will have to implement the Due Diligence Regulation in stages until 2029. Due diligence will then be fully implemented in 2032.  

Preparation and implementation    

The CSDDD requires the collection, processing and preparation of large amounts of data for a complete risk-based review of the entire supply chain. osapiens offers a comprehensive SaaS solution for easy and automated compliance. Although only large companies are currently affected by the EU regulation, it is gradually being extended. It is therefore advisable to start preparing and implementing now.    

Contact us for an initial assessment.