“Roadmap to a sustainable business model”

The European Commission announced on 23 February 2022, the adoption of a proposal for a Corporate Sustainability Due Diligence Directive (CSDDD), with rules requiring large companies to assess and address adverse human rights and environmental impacts in their value chains.

The aim is for companies to take appropriate steps to establish and implement due diligence measures with respect to their operations, their subsidiaries, and their established direct and indirect business relationships throughout their value chains.

The new rules will initially apply to companies with more than 500 employees and revenues of more than €150 million, extending 2 years later to companies with more than 250 employees and revenues of €40 million. Non-EU companies with EU revenues above the thresholds will also have to follow the rules.

The due diligence process includes the following compliance steps:

1. the integration of due diligence into policies and management systems
2. identification and assessment of adverse impacts on human rights and the environment
3. the prevention or mitigation of potential adverse impacts on human rights and the environment
4. the cessation or minimisation of actual adverse impacts on human rights and the environment
5. the establishment and maintenance of complaints procedures
6. monitoring the effectiveness of the policy and its accompanying due diligence measures
7. public communication on due diligence

In addition, the new rules introduce requirements for company directors, clarifying the duties to establish and oversee the implementation of due diligence and its integration into corporate strategy. Moreover, as part of their duty to act in the best interests of the company, directors must take into account human rights, climate change and the environmental consequences of their decisions. The rules also incorporate the inclusion of climate change actions in directors’ performance pay incentives.

Through their participation in the CSR Atelier “Supply Chain Due Diligence”, business executives will be able to understand how the upcoming CSDDD affects the strategic planning and operation of their business, looking specifically at issues that arise when adapting businesses to it such as:

• The requirements of the CSDDD in relation to business supply chain management.
• Good practices of responsible supply chain management.

In addition, during the CSR Atelier thematic workshops, business executives will be able to exchange views, reflections and good practices on supply chain management in the context of alignment with the CSDDD requirements, with the aim of jointly developing improved corporate action plans and guidelines for business adaptation to this new directive and ultimately transition to a sustainable business model.

In particular, the CSR Atelier on “Due Diligence in Supply Chain Management” is expected to have the following deliverables:

• A guide for the implementation of a proactive approach to the management of the issue with examples of good practices from Greece and abroad.
• “CSR Lab” podcast episodes on the topic with highlighting good practices of pioneering companies.
• Publication of a thematic “CSR-Focus” on the topic.
• Participation in a special high-level event on CSR and ESG issues to be held in 2023.