Supply chains are about to become the next big thing in sustainability compliance. However, many organizations still lack the data and assurance capabilities to track sustainability and human rights activities across their extended supply chains – which is required by the EU’s Corporate Sustainability Due Diligence Directive (CSDDD). Many others that fall out of scope of the directive may not realise that, as part of the supply chain, they will need to provide a host of new data to their larger clients.
CS3D must be incorporated into EU member states’ national laws by July 2026. It introduces a corporate due diligence duty for large companies to identify and address “adverse human rights impacts” and environmental impacts not only in their own operations, but also in those of their subsidiaries and in their chain(s) of activities. Large companies are also obliged to put into action a transition plan for mitigating climate change
