Intertek’s experts help you navigate throughout the EU’s CSDDD and CSRD sustainability frameworks which require companies to enhance and report sustainability governance, risk management and transparency across their operations and supply chains.
The Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) entered into force in January 2023 and July 2024 respectively. They are closely linked, both requiring companies to enhance sustainability governance, risk management, and transparency. However, while CSDDD focuses on due diligence in supply chains and business operations, CSRD mandates sustainability reporting. To efficiently align compliance efforts, companies should integrate due diligence and reporting processes into a cohesive sustainability framework.
While CSDDD (Due Diligence) requires companies to actively identify, prevent and mitigate negative human rights and environmental impacts in their operations and supply chains, the CSRD (Reporting) requires companies to disclose sustainability-related information, including risks, impacts, and due diligence processes, in line with the European Sustainability Reporting Standards (ESRS). Essentially, CSDDD mandates action, while CSRD mandates disclosure of that action. Companies affected by the CSDDD will likely have to report on their due diligence processes under CSRD.
How to Prepare for the CSDDD and CSRD Compliance?
- Companies subject to both directives must not only carry out sustainability due diligence but also report transparently on their actions.
- Companies affected by CSDDD should align their due diligence efforts with CSRD reporting requirements to ensure consistency and compliance.
- SMEs should prepare for indirect impacts, as they may face due diligence expectations from larger partners and reporting obligations under CSRD.
How Intertek can help
Intertek experts can help your company develop an integrated sustainability framework that meets both due diligence and reporting requirements by:
- Training your teams to understand the implications that the CSDDD and CSRD will have on your business, dive into the supply chain risks, human rights and environmental due diligence as well as mandatory disclosure requirements and cover how to get ready for submission.
- Gap Analysis to assess which CSRD reporting areas overlap with CSDDD due diligence, including your corporate sustainability practices, materiality analysis and ESG aspects and provide a strategic action plan to ensure you follow the EU requirements.
- Double Materiality Assessment for sustainability reporting within your organization, including impacts, risks and opportunities (IROs) across environmental, social and governance matters.
- ESG Reporting Support to centralize ESG data to track both CSDDD and CSRD indicators across the value chain.
- Risk Identification and Impact Assessment to identify, prevent and mitigate adverse human rights and environmental impacts across your operations and supply chains.
- Supplier Engagement and Management to help you establish transparent, responsible, and compliant supply chains.
- Sustainability Due Diligence Framework to help you identify risks related to human rights, labor conditions and environmental impact by assessing potential negative impacts across the supply chain and implementing effective mitigation measures
