Corporate Sustainability Due Diligence Directive (CSDDD)

A few days ago, the European Council approved the Corporate Sustainability Due Diligence Directive (CSDDD). It mandates that companies “should take appropriate steps to set up and carry out due diligence measures, with respect to their own operations, those of their subsidiaries, as well as their direct and indirect business partners throughout their chains of activities”. It clearly takes a supply chain perspective: “The chain of activities should cover activities of a company’s upstream business partners related to the production of goods or the provision of services by the company, including the design, extraction, sourcing, manufacture, transport, storage and supply of raw materials, products or parts of the products and development of the product or the service, and activities of a company’s downstream business partners related to the distribution, transport and storage of the product, where the business partners carry out those activities for the company or on behalf of the company”. It does “not cover the disposal of the product”. The Directive will now go to the EU Parliament for approval.