The Corporate Sustainability Due Diligence Directive (CSDDD) is a new sustainability directive of the European Union (EU) and distinct from the Corporate Sustainability Reporting Directive (CSRD) in that it aims to address human rights and environmental violations in the supply chain specifically. This latest directive is part of the European Commission’s ongoing commitment to strengthen sustainable investment and corporate governance within EU markets. It seeks to create a common standard and reporting framework for supply chain violations.

In this article, we explain why companies should establish a comprehensive risk management system and integrate responsible business practices into all relevant supply chain processes.