A photo shows a general view on the opening day of the 50th session of the UN Human Rights Council,This week has seen the EU agree new rules on supply chain due diligence, one of a set of laws passed including action on toxic air, packaging and packaging waste. What the Corporate Sustainability Due Diligence Directive establishes is legal liability for corporates on environmental and human rights issues in the European courts.
That means taking action, in their own operations, subsidiaries and across the value chain. A feature of CS3D is that these large companies will need to publish and implement a climate change transition plan in line with the Paris Agreement 1.5C temperature goal. As ensuring that corporations take responsibility for preventing and managing the impacts of their supply chains is seen as critical in global sustainable development efforts, Suzy H.
Even with a weaker framework the CS3D will require companies to focus on sustainability and put resources into new due diligence processes and expanding the teams responsible for such data. It’s also going to see companies need a deeper understanding of the value chain, supplier performance and is likely to affect both operational costs and profitability in the short term.
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