EU Supply Chain Act

Implementing the CSDDD efficiently and reliably

With the CSDDD supply chain law, the EU wants to standardize sustainable business practices at European level. What this means, who is affected and how you can prepare – VERSO provides answers!

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Stricter requirements for the supply chain

The Corporate Sustainability Due Diligence Directive (CSDDD for short) is a new EU directive for more sustainable supply chains. With an extended scope of application and stricter requirements, it is intended to ensure that human rights and environmental standards are strictly adhered to – along the entire value chain.

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LkSG vs. CSDDD: This is new

Sustainability in the supply chain – isn’t this already covered by the LkSG and the CSRD? In fact, the new EU supply chain law CSDDD is based on the LkSG. The difference: significantly more companies are affected by the new directive. New regulations come into force and the protected goods are expanded. At the same time, due diligence obligations regarding environmental and human rights must be reviewed for suppliers along the entire value chain (upstream and downstream).

  • Ongoing analysis of potential & actual risks
  • Reporting on sustainability measures
  • Disclosure of measures to achieve the 1.5 °C target
  • Establishing a complaints channel for the entire value chain

The CSDDD is therefore another important step towards achieving the UN Sustainable Development Goals, as well as the goals of the EU Green Deal.

EU Supply Chain Act, LkSG & CSRD

LkSG, CSDDD and CSRD are closely linked. For example, CSDDD reporting must be integrated into the CSRD report. The good news is that if you have already implemented the LkSG, your work will not have been in vain. As the CSDDD is to be understood as an extension of the LkSG, you can build on your existing LkSG management.

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The CSDDD applies to these companies

EU companies

… with > 500 employees, > € 150 million net sales worldwide

EU companies

… from risk sectors with > 250 employees, > € 40 million net sales worldwide (at least € 20 million generated in the risk sector)

Non-EU companies

… if they have generated < € 150 million net turnover in the EU 3 years after entry into force (provisional agreement)


… if they are part of a supply chain of affected companies

Implement central requirements of the CSDDD with VERSO

The stricter requirements are once again presenting companies with a number of challenges. With the VERSO Supply Chain Hub, you can also implement the CSDDD efficiently – automated and avoiding costly errors.

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Any questions?

Our experts have the answers. Please feel free to arrange a non-binding consultation or contact us by e-mail.