CONTINUOUS IMPROVEMENT
The Corporate Sustainability Due Diligence Directive ( CSDDD ) is a watershed moment for the European Union and its approach to human rights and the protection of the environment when it comes to global supply chains . Formally adopted in July 2024 , the landscape-shifting legislation will transform how companies conduct their procurement and manage their supply chains .
The CSDDD brings with it mandatory human rights and environmental due diligence requirements for companies operating within the EU , both European and non-European . At its core , it is there to ensure businesses are working as part of sustainable development by identifying , preventing and mitigating adverse human rights and environmental impacts throughout their value chains .
It applies to companies that have more than a thousand employees and a worldwide turnover of US $ 450m in the last financial year .
For procurement professionals , the CSDDD brings with it a new era of responsibility and accountability . It requires organisations to undertake a risk-based approach to their due diligence , integrating these considerations into all the relevant policies and risk management systems . This means procurement will need to reassess their supplier selection , contracting and monitoring processes to align with the CSDDD ’ s requirements .
It goes far beyond compliance , by mandating this new proactive approach
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