Supply chains have been faced with an ever-increasing number of regulations and laws. This creates new complexities for supply chains and requires companies to adjust their processes to remain compliant. Supply chain leaders that focus on human rights and sustainability have seen Europe play a leading role when it comes to new regulations in the last few years.
More recently, the EU has put pen to paper with the introduction of the European Union's Supply Chain Due Diligence Directive (CSDDD), also referred to as the “EU Supply Chain Law”, taking a bold step towards corporate accountability. This groundbreaking legislation, which is a first from a global perspective, is being finalised in 2024. This will require companies operating in the EU to start taking full responsibility for human rights and environmental abuses throughout their global supply chains.
Companies operating in the EU can expect the full impact of the CSDDD to be felt sometime between 2027 and 2029, depending on the specific compliance deadlines set by each member state. The current estimated timeline is to have an. Then, on 15 March, the European Union countries did agree to the EU Supply Chain Law, with 17 ambassadors from the 27 EU countries backing the law, and no votes against. The March approval of the draft legislation comes after the bloc failed twice in February to get it approved. Among the countries that objected to the original text were Germany and Italy, which feared it would hit their industries harder, due to their high numbers of small and medium businesses. There were also concerns that companies would remove themselves from the EU due to bureaucracy and legal risks.
