The core principles of the CSDDD: How to stay one step ahead of the regulation by embracing HRDD

The Corporate Sustainability Due Diligence Directive (CSDDD) is gaining increasing traction within the sustainability reporting sphere. Tariq Desai, Human Rights Lead at Position Green, is a skilled expert within the field, and shares valuable insights on some of the most essential aspects of the legislation. 

What is the CSDDD? 

CSDDD is an abbreviation for the Corporate Sustainability Due Diligence Directive, currently under negotiations in the EU. When it comes into force, it will require organisations to carry out Human Rights and Environmental Due Diligence, or Sustainability Due Diligence, throughout their own operations and supply chain.

What is the difference between HRDD and CSDDD? 

There is really not much of a distinction between the two. Human Rights Due Diligence (HRDD) is the framework that CSDDD requires companies to utilise when complying with the law, applying it to both human rights and environment impacts.

How is HRDD integrated?

HRDD is rooted in the UN Guiding Principles of Business and Human Rights and used in the Organisation for Economic Co-operation and Development (OECD) guidelines for multinational enterprises. These are the frameworks the CSDDD regulations are based on. This means that if you already comply with the UN Guiding Principles or the OECD guidelines, you are well placed to comply with the CSDDD.

What are the key steps towards compliance?

To comply with the CSDDD, our key recommendation is essentially to carry out Sustainability Due Diligence, which is Human Rights Due Diligence that includes environmental impacts. The reporting requirements might have minor differences, however, if you already integrate HRDD into your reporting repertoire, you are in a strong position to adhere to this law

What does the timeline for implementation require?

The EU Council, the EU Commission and the EU Parliament are still negotiating over the final text. Once they have gathered to finalise the text, it needs to be approved. Currently, this looks like it will be in spring 2024. Following the approval, there will be a two-year lead-in period for nation-states to incorporate the law into their own national legislation.

How can Position Green help companies get started with the CSDDD?

We can support your CSDDD journey through our software solution for HRDD. Utilising the solution allows you to discover how your supply chain is managing human rights and the inherent risk within it. Additionally, we offer advisory services to help you strategise and plan what actions you need to take to mitigate human rights and environmental impacts. Our valuable e-learning packages can be leveraged to simplify the process of integrating human rights and environmental knowledge throughout the whole organisation. 

Learn more and book a demo to see our HRDD software solution.