Around 50 000 companies operating in the EU will be affected.
On 23 February 2022, the European Commission attempted to kickstart a new era of corporate due diligence when it published its proposal for a Corporate Sustainability Reporting Directive (CSRD).
The proposal is part of the EU’s effort to achieve the goals set by the Paris Agreement and the recent European Green deal. The main elements of the EU due diligence directive concern human rights and environmental provisions.
The EU supply chain due diligence proposal aims to increase accountability for corporate leaders. By 2024, for large companies, and 2026 for medium-sized companies in high-risk sectors, corporate directors will have their duty of care expanded.
This legislation will have a scaling impact on the management of global supply chains, putting pressure on supply chain, procurement, sourcing, and sustainability teams to integrate robust supply chain due diligence policies and create a means for measuring/monitoring overall supply chain compliance.