Indrajit Sarkar’s Post

Let’s delve into the Corporate Sustainability Due Diligence Directive (CSDDD), its implications, and how it relates to #GRI reporting and #ESG performance. Corporate Sustainability Due Diligence Directive (#CSDDD): The CSDDD is a legislative initiative by the European Union Council. Its primary goal is to enhance responsible business conduct by imposing due diligence obligations on large companies. Key aspects of the CSDDD include: ·       Scope: It applies to both large EU companies and non-EU companies active in the EU. ·       Adverse Impacts: The directive focuses on identifying and addressing actual and potential adverse impacts on human rights and the environment. ·       Value Chain: Companies must assess impacts related to their own operations, those of their subsidiaries, and those carried out by their business partners. ·       Penalties and Civil Liability: The directive establishes rules for penalties and civil liability in case of violations. ·       Paris Agreement Alignment: Companies are required to adopt a plan ensuring their business model and strategy align with the Paris Agreement goals. ·       Transition to Green Economy: The CSDDD contributes to the EU’s transition toward a more climate-neutral and green economy as outlined in the European Green Deal and the UN Sustainable Development Goals. The CSDDD reinforces ESG reporting by emphasizing due diligence to prevent and mitigate adverse impacts on human rights and the environment. Companies that prioritize ESG reporting are better positioned to fulfill their obligations under the CSDDD. In summary, the CSDDD represents a significant step toward responsible business behavior, aligning with existing sustainability reporting frameworks like GRI and reinforcing the importance of ESG considerations. By holding corporations accountable for their impacts, this directive contributes to a more sustainable and ethical business landscape within the EU and beyond.