Global
Australia
France
Germany
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Poland
Qatar
Spain
UAE
UK
Global
Australia
France
Germany
Ireland
Italy
Poland
Qatar
Spain
UAE
UK
The Corporate Sustainability Due Diligence Directive (CS3D) introduces ground-breaking obligations for companies to tackle human rights and environmental challenges. We have conducted comprehensive analysis to uncover the implications of this directive for businesses and to guide them in navigating this new era of corporate sustainability due diligence.
'True Diligence' uncovered the intricate challenges of complying with CS3D by surveying over 1,200 C-Suite executives from companies with a global turnover of at least €150 million, spanning various jurisdictions and sectors.
The findings from this comprehensive analysis have shaped our dedicated CS3D sector and country reports. Each report offers valuable insights into the anticipated challenges and opportunities, sharing key findings from global business leaders to help your business.
The consumer and retail sector has experienced profound changes in recent years; driven by global megatrends such as the rapid rise of e-commerce, disruptive technologies, geopolitical conflicts, and the widespread impacts of the COVID-19 pandemic and the resulting supply chain instability. Amidst this volatility, organisations faced the critical challenge of delivering ‘business better than usual’ in an era increasingly defined by corporate responsibility.
Energy lawyers have been discussing sustainability, energy security and resilience with clients for the last two decades, but often these topics have not reached board level; or if they have, they were not considered as high priority or worthy on investment. Today, these issues have been elevated to the top of all organisations’ board agendas – from energy generators and energy consumers to distributors and suppliers.
When considering the environmental and human rights impacts of the insurance sector, we have to look at it through two key lenses: the impact of an insurance firm’s actions and the indirect impacts of its customers’ actions.
Private equity plays an important part in Europe’s prosperity, fostering innovation, generating significant employment and driving economic growth through the development of their portfolio companies. However today, private equity firms are also expected to help protect the planet and safeguard human rights.
With its dual influence on the built environment and community wellbeing, the real estate sector is well positioned to tackle the intertwined challenges of safeguarding the environment, combatting climate change and respecting human rights. The introduction of the Corporate Sustainability Due Diligence Directive (CS3D) means business leaders cannot afford to ignore the escalating social demand and legal obligations for enhanced corporate responsibility.
The transport and logistics sector is the backbone of global industry, essential for maintaining smooth business operations and driving economic growth. In recent years, the sector has had to navigate an array of challenges, from the COVID-19 pandemic, to rising fuel costs and persistent labour shortages. As the sector expands and global challenges continue to mount, the imperative for responsible and sustainable growth has never been greater. The introduction of the Corporate Sustainability Due Diligence Directive (CS3D) has significant implications for transport and logistics organisations due to their international scope and complex employment arrangements.
France is a recognised leader in its efforts to address human rights and environmental due diligence, setting a precedent back in 2017 by enacting the Corporate Duty of Vigilance Law. This legislation was the cornerstone for developing the EU's Corporate Sustainability Due Diligence Directive (CS3D), aimed at fostering responsible corporate behaviour by establishing risk-based environmental and human rights due diligence.
Germany was one of the first movers in implementing due diligence regulation with the implementation of the German Supply Chain Due Diligence Act, Lieferkettengesetzes (LkSG), in January 2023. Transposing the forthcoming EU Corporate Sustainability Due Diligence Directive (CS3D) into related national legislation will pose challenges for each EU State. However, for Germany, it remains uncertain which parts of the LkSG will be amended or merged with the CS3D, to impose more extensive due diligence obligations across the wider supply chain.
The Corporate Sustainability Due Diligence Directive (CS3D) will be the first extensive national legislation in Italy that ensures the identification, prevention and mitigation of adverse human rights and environmental impacts. To date, Italy’s action on supply chain due diligence has been largely aligned with EU directives and we expect this to continue with the implementation of CS3D, which will help to drive greater corporate responsibility across the country.
In comparison to other European countries, Poland is still in the early stages of adopting ESG-related regulations. However, Polish businesses are starting to recognise the importance of ESG issues and are preparing for the upcoming revolution in this area.
In recent years, Spain has taken significant steps to enhance corporate accountability in respect of human rights and the environment, with new directives and regulation shaped by wider EU initiatives. The foundations for compliance with the Corporate Sustainability Due Diligence Directive (CS3D) have already been laid, so businesses must now ensure the pace of implementation accelerates.
UK businesses have a strong grounding in environmental and human rights due diligence, but the implementation of the Corporate Sustainability Due Diligence Directive (CS3D) will raise the bar and challenge them to think holistically about what it means to be a responsible business.
To unlock real change, we must embrace a holistic approach to due diligence. By pinpointing and addressing the areas of greatest risk to people and the planet within their value chain, leaders can cement the credibility of their commitment to ‘doing the right thing’.
Compliance with CS3D not only ensures legal adherence but also enhances a company's reputation, attracts socially conscious investors, and fosters long-term business sustainability.
Our complimentary CS3D self-assessment tool enables you to assess your preparedness for the key themes of the Directive.
Find out more about our CS3d Self-Assessment Tool
Businesses need to take action now to prepare for the spotlight’s glare, reduce risk and implement robust strategy. Our team of leading multi-disciplinary consultants and legal advisors will help optimise the impact of your sustainable business strategy and enable risk mitigation actions to unlock business performance and long-term value creation. As trusted advisors, we offer independent assessments to business leaders on their end-to-end sustainable business strategy and can develop action plans to prevent and mitigate business impacts and optimise performance.
Has your business considered how the CS3D will apply to you, either directly or as part of the value chain of an entity within direct scope?
Here are some key steps to help you prepare:
