CSDDD

The EU Corporate Sustainability Due Diligence Directive (CSDDD) aims to ensure that companies identify, prevent and address adverse impacts on human rights and the environment in their own operations and value chains.

BDO supports companies throughout the entire process, from understanding the applicable requirements and conducting a gap analysis to identifying risks across their operations and value chains. We also support companies in prioritising risks, developing policies and action plans, and establishing procedures to prevent and address adverse impacts. Furthermore, we can help integrate due diligence into corporate governance, procurement processes and risk management, as well as develop methods for monitoring and evaluating the effectiveness of measures taken.

Managing Sustainability Risks and Strengthening Responsible Business Practices

The EU's Corporate Sustainability Due Diligence Directive (CSDDD) aims to strengthen how companies address human rights, environmental impact, and responsible governance within their operations and value chain. The directive introduces stricter requirements for companies to identify, prevent, manage, and monitor adverse sustainability-related impacts linked to their own operations, subsidiaries, and business relationships.

Although the implementation of the CSDDD is still evolving within the EU, many companies already need to start analysing how their ways of working, governance, and processes may be affected by upcoming requirements and growing expectations from investors, customers, and other stakeholders

Common Challenges in ESG Due Diligence Work

• Transparency and traceability in the value chain 
   Many organisations find it challenging to gain sufficient visibility into their supply chains and business relationships, particularly within complex or global value chains.
• Data collection and quality assurance
  Access to relevant, reliable ESG data often varies across suppliers, investments, and geographic regions.
• Evolving regulatory requirements and expectations 
   Ongoing developments around the CSDDD and other sustainability-related regulations mean companies need to continuously adapt their processes and ways of working to new requirements and market expectations.