CSRD, CSDDD And The Increased Focus Of Legislation On Cross-border Supply Chains

In part one of The ESG Collection covering current themes and topics high up on the ESG agenda for businesses, we're focusing on the environmental pillar of ESG. This article considers sustainability reporting requirements for EU business supply chains under the EU Corporate Sustainability Reporting Directive (CSRD) and EU Directive on Corporate Sustainability Due Diligence (CSDDD).

Recent developments in EU legislation reflect increased levels of scrutiny by governments, the media, consumers and customers on supply chains. In particular, the CSRD and CSDDD have been devised to press businesses into investigating the source of their supplies. As well as reporting their findings to stakeholders, businesses must demonstrate the steps taken to identify those findings.