A New Era in Supply Chain Accountability: A Call to Action for All Businesses

Apr 24, 2024

With the endorsement of the Corporate Sustainability Due Diligence Directive (CSDDD) by the European Parliament, a new era of supply chain transparency and accountability is upon us. This landmark legislation extends beyond borders and sectors, underscoring a universal truth: in today's interconnected world, the actions of one ripple through the entire supply chain.

Who is affected?

1) Businesses with over 1000 employees and a net worldwide turnover >450 million euros. Additionally, companies engaged in franchising or licensing agreements within the EU, generating substantial royalties
2) All businesses who depend on those mentioned under 1) as their customers.

Why should your business care?

The cascading effect of the Directive will compel large corporations to ensure their entire supply chain, including their suppliers and their suppliers’ suppliers, adhere to stringent environmental and labor standards. This means that medium-sized businesses, even if they fall below the threshold, will also need to demonstrate compliance, as they might be facing new requirements from their customers who do fall under the scope of the law.

How can DEKRA help?

DEKRA’s Supply Chain Risk Management solutions are designed for this very moment. Tailored to help businesses of all sizes to map, manage, and mitigate risks in their supply chain, our services are not just about being aligned with new EU Directives. They are about preparation, adaptation, and leadership in a world where consumers demand ethical and sustainable practices from every brand they interact with.
Although challenging, the CSDDD’s mandate for more sustainable and responsible business practices can be a catalyst for innovation, competitiveness, and long-term resilience. The benefits resonate with investors, customers, employees, and other stakeholders who are increasingly making decisions based on sustainability criteria.
Sooner rather than later, the sustainability and ethical standards your business upholds (or doesn't) will influence your market position, customer loyalty, and operational resilience. Take action now and let DEKRA’s expertise ensure your business is competitive in a market that rewards foresight, responsibility, and sustainability.