Benchmark Gensuite®’s Post

Excellent re-cap of the most essential elements of the CS3D.

🌍 Corporate Sustainability Due Diligence Directive - We have compiled everything you need to know and more on the political agreement reached yesterday. 👉 Make sure to subscribe to Mayer Brown's Eye on ESG blog for more updates! #ESG #Compliance #DueDiligence

While the Corporate Sustainability Reporting Directive (#CSRD) marks a shift in ESG reporting, the Corporate Sustainability Due Diligence Directive (CSDDD) will mark a paradigm shift in corporate behavior. The EU regulation will shift focus from pledges to action by requiring measurement of on-the-ground risks and adverse impacts. #CSDDD is a significant step forward in the vast and complex world of regulations as the directive's emphasis on impact and accurate measurement is a de facto signal. Also, the focus on pledges is revolutionizing. Importantly, the CSDDD signals an ideological shift that occurred over the past few years – the management of ESG issues becoming part-and-parcel of fiduciary duty: - Fostering a culture of sustainable and responsible corporate behavior - Incorporating human rights and environmental concerns into the operations and governance of companies. With the world passing through the recent era of commitments and pledges, and companies moving into execution mode, regulators should ensure that companies have adequate due diligence procedures in place to identify, mitigate, and manage actual adverse impacts and risks. Until now, most regulations and voluntary sustainability initiatives have largely focused on disclosures, including policies and processes. Making pledges and drafting policies are good, but at the end of the day they are just intentions. The CSDDD requires action on the basis of the measurement of on-the-ground risks and adverse impacts. Article 4 of the directive outlines a number of environmental and human rights due diligence processes that must be carried out by companies that fall within its scope, including: - due diligence integration into company policies, - public communication of those policies, identification of actual or potential negative - human rights and environmental impacts, and prevention and mitigation of the potential impacts. Because the necessary requirements cover companies' value chains and business relationships, they establish a matrix of accountability. A company required to get its house in order will necessarily have to call on others – in its value chain – to do the same, thus creating a positive domino effect. The directive clarifies the duties of directors: in addition to overseeing the requirements mentioned above, directors are explicitly required to take into account adverse environmental impacts and human rights impacts of the decisions made when fulfilling their duty to the company. In other words, risk assessments are inherent to fiduciary duty and the execution of reasonable care. https://lnkd.in/gd2bRbjQ #ESG #sustainability #netzero #impact

Last week Wednesday, the European Parliament voted with a majority in favour of the Corporate Sustainability Due Diligence Directive (CSDDD). Even though it is an EU-directive, UK companies could still be affected and obliged to address their impact on human rights and the environment. Interested to know how? Read my insight article below 🌎🍃 #CSDDD #Sustainability #ValueChain #HumanRights #DueDiligence

CSDDD - want to know more and how EU regulations may impact you, please see this article by my colleague Lilly Walstra #sustainability #ESG #risk #CSDDD

Given the labryinth of ESG laws being promulgated outside the USA, and the state-by-state approach here in the USA along with the proposed SEC rules coming soon(?), what are companies (and their legal advisors) to do? This article in JD Supra, authored by Ethixbase360 offers a great summary and very sound advice. ✔️"The intricate landscape of state-level lawmaking and the dynamic realm of ESG considerations poses a substantial challenge." ✔️"This challenge is particularly pronounced for American companies operating on a global scale, as they must grapple with the demand for separate compliance programs across numerous countries and U.S. states." ✔️"However, despite these complexities, it remains imperative for such companies to embrace a proactive approach, maintaining vigilance and showcasing adaptability within their regulatory compliance efforts." ✔️"By doing so, companies can ensure adherence to an intricate web of regulations but also foster a reputation for responsible and sustainable practices in an increasingly interconnected world." Sound advice, indeed! #esg #sustainability #lawandlegislation #regulation

Is the EU on the Verge of Criminalizing ESG Non-Compliance? Find out the Latest Developments and Implications. #ESG #EURegulations #Sustainability 

Disciplined ambition: Fair-trading & competition law in ESG Proactively championing ESG goals is increasingly popular with companies seeking to take a moral course for employees, customers and communities and as a way to create value for shareholders. https://on.ft.com/45JKoGk

💡 In the fast-evolving landscape of corporate responsibility, the concept of due diligence has taken on a new and profound significance with the emergence of Environmental, Social, and Corporate Governance (ESG) considerations. 💼 For businesses, particularly those in supply chain management, this paradigm shift has significant implications. 🇪🇺 With regulators, notably the European Union (EU), placing renewed emphasis on ESG factors, organizations are finding themselves compelled to not only assess their own impacts but also extend their accountability to encompass the actions of their third-party partners. Read more 👉 #esg #sustainability #esgsoftware

With a significant and growing increase in #ESG relevant regulation, it is becoming more important and challenging to keep track of the regulatory landscape. With tools like the CMS CSDDD Navigator, we are trying to help our clients mitigate their risks. It was great to have the opportunity to discuss a variety of ESG regulations with clients, including the Corporate Sustainability Reporting Directive (#CSRD), the upcoming Corporate Sustainability Due Diligence Directive (#CSDDD) and the EU Deforestation Regulation.(#EUDeforestationRegulation).