RISK MITIGATION
The European Union marked a pivotal moment in its legislative efforts when adopting the Corporate Sustainability Due Diligence Directive ( CSDDD ).
The directive places significant responsibilities on contracting companies to ensure compliance , shifting the focus to procurement professionals across all levels . It represents a transformative approach to how large companies operating within the EU market address human rights and environmental concerns throughout their value chains .
A milestone in sustainability legislation The CSDDD officially came into force on July 25 , 2024 .
Jurei Yada , Programme Lead for Sustainable Finance at E3G , characterised the event as a landmark milestone : “ Today ’ s decision marks the happy end to the story of the CSDDD vote in Council , which has been full of plot twists and drama . At stake was establishing stronger due diligence obligations to better protect the people and the environment and we are now almost there to have that framework in Europe . That is cause for celebration .”
Member States must transpose the directive into law by July 26 , 2026 . The extended timeline allows for the staggered implementation of the directive ’ s requirements , giving procurement teams time to prepare for the sweeping changes ahead .
procurementmag . com 95