Guides and tools for CSDDD, Forced Labour Regulation, CSRD and why business model transformation is key

We’re thrilled to share with you our August sustainability insights.

Major due diligence legislation was recently adopted by the EU, requiring companies to start their compliance efforts immediately. Therefore, we are excited to introduce a new CSDDD maturity tool that helps companies unpack and operationalise the new requirements. You can also find an interview with our partner Sven Beyersdorff , on why rethinking your business models is crucial to become a sustainable business. And finally, for those who are not yet knee-deep in ESG reporting, we've compiled a guide to when and how you can get started with the CSRD.

Due diligence legislation overview

The EU legislative landscape is being transformed by a series of new regulations, all zeroing in on specific facets of due diligence. These new laws are not just adding layers of compliance, but are fundamentally changing how companies must operate within the EU, making rigorous supply chain scrutiny and ethical governance non-negotiable.

Mandatory sustainability due diligence for corporates starting from 2027

The Corporate Sustainability Due Diligence (CSDDD) marks a shift from voluntary CSR to mandatory due diligence, requiring concrete actions to mitigate harm and align with the Paris Agreement. Non-compliance with the directive could result in fines of up to 5% of global turnover.

The CSDDD will mandate companies to adopt the following human & environmental rights due diligence processes:

?Discover how to prepare effectively for the provisions of the CSDDD →?

The new CSDDD Maturity Screening tool developed by Nordic Sustainability and Impact CSR is designed to help companies assess their preparedness and identify necessary next steps.?

The CSDDD Maturity Tool:

• Translates the directive’s legal provisions into operational questions
• Assesses potential gaps and risks within the company with results summarised in user-friendly dashboards
• Supports the development of an action plan to ensure timely compliance with CSDDD and international standards

? Read more about our tool here →?

Looking for 2 pilot projects

We are currently seeking two companies interested in piloting our CSDDD maturity tool to gain an early advantage in CSDDD compliance.?

This opportunity is available at a reduced rate and will be allocated on a first-come, first-served basis.

?Get in touch with Anna Katharina Bierre and Maja Johannessen →?

EU bans products made with forced labour requiring stricter due diligence

The Forced Labour Regulation is part of the larger push to drive a green and just transition globally. It prohibits the sale of any products made with forced labour by 2027.

1. Comprehensive scope: The regulation applies to all products, regardless of their origin, within the entire supply chain.
2. Due diligence requirements: Companies must implement robust due diligence processes to identify and eliminate forced labour risks.
3. Enforcement and penalties: Authorities will have the power to withdraw products and impose penalties on non-compliant companies.

? Read the full article here →?

Rethinking the business model

A record number of companies have set climate reduction targets, yet many still fail to make real progress in cutting CO2 emissions. Nearly every company’s business model is under pressure, so through collective effort, the field can drive innovation and boost competitiveness. ?

Sven Beyersdorff , Partner at Nordic Sustainability and Frederikke Aasted , Senior Manager at Nordic Sustainability, discussed the urgency of rethinking business models at the B?rsen Summit.?

?Read CSR.dk's interview with Sven here →?

How early should your organisation start its CSRD reporting preparations?

From 2026, mid-sized companies will be required to report on their ESG data. Companies tend to delay their preparations, often underestimating the extensive work required to meet these new standards. To ensure companies meet requirements in time, we recommend to have these three things in place before the first reporting year:

? For a guide on how to kickstart your CSRD reporting, read the article here →?

Thank you for reading another edition of our newsletter. If you think a fellow sustainability nerd would need to hear about the latest sustainability news, forward this email to them. We want this newsletter to be a two-way conversation. Share your thoughts and questions with us on?LinkedIn?and join our?virtual events.

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Kind regards,

the Nordic Sustainability team