Key Obligations under the CSDDD
Kristy Duane
In this video, Kristy dives deeper into the EU's Corporate Sustainability Due Diligence Directive (CSDDD) and covers the specific due diligence obligations that in-scope companies must follow, focusing on human rights and environmental impacts. Additionally, she discusses the climate transition plan requirements that aim to align companies with the EU’s net-zero greenhouse gas emissions target by 2050.
In this video, Kristy dives deeper into the EU's Corporate Sustainability Due Diligence Directive (CSDDD) and covers the specific due diligence obligations that in-scope companies must follow, focusing on human rights and environmental impacts. Additionally, she discusses the climate transition plan requirements that aim to align companies with the EU’s net-zero greenhouse gas emissions target by 2050.
Subscribe to watch
Access this and all of the content on our platform by signing up for a 7-day free trial.
Key Obligations under the CSDDD
17 mins 7 secs
Key learning objectives:
Understand the six specific due diligence obligations outlined in the CSDDD
Understand the criteria for a climate transition plan under the CSDDD
Overview:
Subscribe to watch
Access this and all of the content on our platform by signing up for a 7-day free trial.
- Integration of Due Diligence - Companies must integrate human rights and environmental due diligence into their policies and risk management systems, consulting with employees and setting out a code of conduct for themselves, their subsidiaries, and business partners. These policies must be reviewed at least every two years or whenever significant changes occur.
- Identify, Assess, and Prioritise Impacts - Companies are required to identify, assess, and prioritise both potential and actual adverse human rights and environmental impacts in their operations and across their value chain. This includes direct and indirect business partners and requires comprehensive mapping and stakeholder engagement to ensure transparency and effectiveness.
- Addressing Adverse Impacts - Companies must take steps to prevent and mitigate potential impacts and remedy actual impacts where they have caused or contributed to them. The Directive encourages measures such as action plans, financial support, and, where necessary, the termination of business relationships, but only as a last resort.
- Complaints Procedures - The CSDDD requires companies to establish complaints procedures for those affected by adverse impacts, allowing for anonymous or confidential reporting.
- Monitoring - Ensure there is monitoring of own operations, the operations of their subsidiaries and business partners. Also monitor the various measures the company has put in place to address adverse impacts, in order to assess the adequacy and effectiveness of a company’s due diligence processes. Assessments must be carried out after any significant change that may have any bearing on the due diligence policy and processes, or at the least every 12 months.
- Communication - Companies must publish an annual statement on their website every 12 months.Companies that are also in-scope for the CSRD are exempt from this obligation because they already have to meet an equivalent requirement under the CSRD.
- Ensure the company’s business model and strategy are compatible with the EU’s objective of achieving climate net zero greenhouse gas emissions by 2050
- The plan has to be updated annually and include a description of the progress the company has made towards achieving its targets
- This obligation applies to all in-scope companies, including those in the financial services sector
Subscribe to watch
Access this and all of the content on our platform by signing up for a 7-day free trial.
Kristy Duane
There are no available Videos from "Kristy Duane"