CSDDD will finally enter into force: how businesses can prepare

The European Union’s Corporate Sustainability Due Diligence Directive (CSDDD) will officially enter into force on 25 July, meaning businesses in scope?of the law should start preparing to analyse and improve their due diligence strategy. The new legislation lays down mandatory due diligence requirements for companies regarding the environmental and human rights impacts along their supply chain activities. The obligations will apply to in scope businesses in a phased approach beginning in 2027.?

The CSDDD includes requirements such as mitigating human rights risks and impacts from businesses and their supply chain activities as well as publicly reporting on their due diligence in line with the Corporate Sustainability Reporting Directive (CSRD).?

Watch our latest webinar recording to learn more about preparing for the upcoming CSDDD requirements: Navigating EU CSDDD: Key expectations and preparation steps for companies – Webinar | LRQA?

Along with the CSDDD, the German government announced it would adjust the scope of its current supply chain due diligence law (German Supply Chain Due Diligence Act) to align with CSDDD requirements. This means the scope of the German law would be reduced, applying to only about a third of the companies under the current requirements. The reporting requirements will also be adjusted for companies in scope of the German Supply Chain Act. When the Corporate Sustainability Reporting Directive (CSRD) takes effect on 1?January 2025, companies shall have the option to replace the existing reporting requirements with reports under the CSRD.?

Stay up to date with supply chain due diligence regulations?

Supply chain due diligence regulations are continually being implemented worldwide and are evolving as governing bodies place more focus on businesses to reduce their adverse impacts on communities and the environment. ?

Our guide to ESG due diligence requirements is continually updated to keep businesses informed of changes, new requirements, and how businesses can comply. Click the image to see our updated guide and receive access to all the latest regulatory developments.?

Are you monitoring your supply chain’s GHG emissions? ?

Only 22% of CFOs are ready for climate reporting and assurance requirements, according to a new survey, and with rising requirements for businesses and increased focus on reducing carbon emissions, monitoring and managing this information are crucial in today’s climate.?

This new world order for tracking supply chain emissions requires enhanced programmes and data implementation. Our latest update to our supply chain due diligence platform EiQ introduces a new Environmental page, which allows you to monitor and view your supply chain's greenhouse gas (GHG) emissions and environmental data. ?

Here’s what you can expect from the new Environmental Page:?

• A high-level overview of your GHG emissions: Gain insights into your supply chain’s total GHG emissions based on your current dataset. Understand the full scope of your environmental impact with clear, actionable data.?

• An estimated total of your supply chain’s emissions: See your supply chain's projected GHG emissions, utilizing both your current data and estimated data. Plan ahead and make informed decisions to reduce your carbon footprint.?

• Emissions compensations via EAC: Discover the percentage of sites that have implemented emissions compensations through Energy Attribute Certificates (EAC). Monitor your progress towards carbon neutrality and identify areas for improvement.?

• Refrigerants usage: Track the percentage of sites that have added refrigerants to equipment within the reporting year. Stay informed about the environmental impact of refrigerant use in your supply chain.?

• Water consumption data: Access detailed water consumption data derived from specialized environmental assessments. Understand your supply chain's water usage and implement strategies for sustainable water management.?

• And more!?

Get a free demo of EiQ to better understand how to map and manage your supply chain data.

Aligning suppliers with climate targets and ambitions

Supplier engagement is critical in improving your supply chain's ESG risk exposure. Aligning suppliers with expectations, targets, and regulatory compliance will enhance your end-to-end operations and support in protecting your business integrity.

Our digital learning service empowers suppliers to implement business best practice and offers training courses in local languages on various supply chain ESG topics. Our Climate change and greenhouse gas emissions course in EiQ Learn can help you understand global climate agreements and the expectations being placed on companies. By taking the course you’ll learn how to measure, manage and report your emissions, and how you can support suppliers to do the same.

Access this course for free by clicking here and entering the branch?code ‘insights’.

Businesses around the world are using EiQ Learn to understand supply chain risks, align with regulatory requirements, and support supplier compliance and remediation.

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