SUPPLIER DIVERSITY
The European Union marked a pivotal moment in its legislative efforts when adopting the Corporate Sustainability Due Diligence Directive( CSDDD).
The directive places significant responsibilities on contracting companies to ensure compliance, shifting the focus to procurement professionals across all levels. It represents a transformative approach to how large companies operating within the EU market address human rights and environmental concerns throughout their value chains.
A milestone in sustainability legislation The CSDDD officially came into force on July 25, 2024.
Jurei Yada, Programme Lead for Sustainable Finance at E3G, characterised the event as a landmark milestone:“ Today’ s decision marks the happy end to the story of the CSDDD vote in Council, which has been full of plot twists and drama. At stake was establishing stronger due diligence obligations to better protect the people and the environment and we are now almost there to have that framework in Europe. That is cause for celebration.”
Member States must transpose the directive into law by July 26, 2026. The extended timeline allows for the staggered implementation of the directive’ s requirements, giving procurement teams time to prepare for the sweeping changes ahead.
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