CSDDD
On 24/5/2024 the European Council announced the approval by member states of the Corporate Sustainability Due Diligence Directive (CSDDD), marking the final step in the adoption of legislation setting mandatory obligations for large companies to address their negative impacts on human rights and the environment across their value chains.
CSDDD for small businesses.
Small and medium-sized enterprises are actually not directly included in the CSDDD scope. However, they may be indirectly affected as part of the supply chain of larger companies. For small companies already providing various types of ESG information to larger B2B customers, a standardized regulation through the CSDDD can be beneficial. Currently, corporations define different requirements and smaller suppliers are under pressure to cover these, often inconsistent, demands.