Hot Topic | February 2024
A German supply chain due diligence act is already effective, with an EU-wide directive in the final stages of approval.
MARCH UPDATE: A compromise text of the Corporate Sustainability Due Diligence Directive (CSDDD) was agreed by the Council of the EU and will now be voted on by the European Parliament, most likely by the end of April 2024. The compromise text has made several concessions from the original proposal, including tripling the revenue threshold for non-EU companies from €150M to €450M. The CSDDD section of our Hot Topic will be updated following the European Parliament vote.
More governments are seeking to regulate activities within supply chains with new laws aiming to prevent and mitigate environmental and social risks within company supply chains. Our Hot Topic takes a look at two such instances in the EU: the German Supply Chain Due Diligence Act (SCDDA), which took effect in January 2023, and the EU’s proposed CSDDD.
German Supply Chain Due Diligence Act
EU’s Corporate Sustainability Due Diligence Directive
Despite the SCDDA and proposed CSDDD being non-US directives, US and other non-EU companies would be impacted if they meet certain scoping criteria that are discussed in our Hot Topic.
ESG in Europe - Global implications of supply chain due diligence acts
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