Published: 1st January 2024
Read time: 3 min
Navigating the Corporate Sustainability Due Diligence Directive
On December 14th, 2023, the EU reached a provisional agreement over the Corporate Sustainability Due Diligence (CSDDD). As businesses globally strive towards sustainable practices, understanding the CSDDD is crucial, especially for companies operating in or with the EU. We applaud this directive as it represents a massive step in integrating human rights and environmental considerations into corporate operations.
Understanding the CSDDD
The CSDDD is a groundbreaking directive aiming to foster responsible corporate behaviour. It mandates the integration of human rights and environmental concerns into business operations, reflecting the EU's broader push for sustainable international business practices.
The CSDDD’s Global Impact
The directive targets two main groups:
- Large EU companies (with 500+ employees and €150+ million net turnover) and those in high-impact sectors (250+ employees and €40+ million turnover).
- Non-EU companies active in the EU.
This global reach means that even businesses outside the EU must comply if they have significant operations or partnerships in the EU.
CSDDD Requirements
Companies must identify, prevent, and mitigate negative human rights and environmental impacts within their operations, subsidiaries and value chains. A key component is developing a sustainability strategy aligned with the Paris Agreement's goal of limiting global warming to 1.5 °C. Furthermore, companies are required to establish grievance mechanisms and report publicly on their due diligence processes.
Penalties for Non-compliance
Failure to adhere to the CSDDD can result in fines, compensation claims for damages and exclusion from public tenders. These penalties emphasise the directive's seriousness and the EU's commitment to enforcing sustainable practices.
How can The Waste Not Spot help?
At The Waste Not Spot, we specialise in helping businesses navigate these new regulations. Our services include integrating sustainability into corporate strategies, conducting supply chain due diligence and developing climate transition plans. We understand the nuances of the directive and can guide companies through the process of aligning their operations with these new standards.
The CSDDD is a significant move towards more responsible and sustainable business practices in the EU, with far-reaching global implications. It's essential for companies to understand and align with these regulations, and The Waste Not Spot is here to guide you every step of the way.
Don't let the complexities of the CSDDD slow down your business's progress. Contact The Waste Not Spot today for expert advice and support in making your business operations sustainable, compliant and future-proof! We'll help you turn these new requirements into opportunities for innovation and sustainable growth.
Resources:
- European Commission - “Corporate Sustainability Due Diligence”
- Council of the EU - “Press Release”
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