Corporate Sustainability Will Extend To Value Chains – Four Tips For Implementing Due Diligence Duty

Corporate sustainability is an increasingly integral part of business operations, and in the coming years it will permeate the strategy, ways of operating and value chains of companies. Just on time for Christmas, the European Parliament and the Council reached a provisional agreement on the Corporate Sustainability Due Diligence Directive (CSDDD), which will establish a due diligence duty for companies to respect human rights and the environment in their operations and value chains. Failure to comply with this duty could lead to a sanction of up to 5% of the company's global turnover.

The CSDDD will apply to large companies with more than 500 employees and a net global turnover of over 150 million euros. Lower thresholds apply to companies that make at least 20 million euros of their net turnover in the textile industry, the minerals industry or in agriculture and forestry: in this case, the thresholds are 250 employees and 40 million euros. The CSDDD will also