Corporate Sustainability Due Diligence

In February 2022, the European Commission adopted its proposal for a Directive on Corporate Sustainability Due Diligence (CSDD) which aims to foster sustainable and responsible corporate behaviour throughout global value chains. Under the new rules, companies will have to identify, prevent or put an end to potential or actual negative human rights and environmental impacts resulting from their activities. 


The new due diligence rules will apply to certain company's own operations, but also to those of their value-chain partners. Only those companies that meet defined thresholds, no matter whether EU or non-EU based, will come directly under the scope of the due diligence rules.


The new rules come at a time when contractors across Europe are still sensing the repercussions of the Covid-19 pandemic and are now confronted with the impact of a war in Ukraine on their operations, as well as on their supply chains. Therefore, there is a need to ensure that the ruleset for CSDD remains manageable and does not lead to additional administrative and cost burden for European businesses.


FIEC has been dealing with this topic together with EIC (European International Contractors). One of our key messages to the EU legislator is that corporate responsibility should be limited to companies’ own operations and direct business partners.  Check out our joint position paper here.

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