INTROSupply to support compliance with EU CSDDD

The EU Corporate Sustainability Due Diligence Directive (CSDDD) is just here, and it’s about to redefine companies value chains across Europe and beyond. This isn’t just another regulation – it’s a call to action for companies to rethink their approach to risk, responsibility, and resilience.

Source : delano.lu
Publication date : 12/05/2024

This Directive, adopted in July 2024 by the EU, aims to promote sustainable and responsible business practices, compelling companies to address their impact on human rights and the environment both within Europe and throughout their global value chains. CSDDD, which will be transposed into Luxembourg law, and will come into operation in a staggered way in the coming years, is about future-proofing your business.

CSDDD: 6,000 companies impacted by 2029

By 2029, the EU Corporate Sustainability Due Diligence Directive (CSDDD) will apply to approximately 6,000 companies. These are businesses with over 1,000 employees and global revenues exceeding EUR 450 million. This marks the final stage of a phased rollout, which initially targets larger corporations in 2027 and 2028.

Non-EU companies with a significant presence in Europe are also in the spotlight. Roughly 900 international firms generating more than EUR 450 million in EU revenue are required to comply with the new rules.

While SMEs and micro-companies aren’t directly covered, they won’t be unaffected. As crucial suppliers in global value chains, many smaller businesses will face growing pressure from larger partners to align with the new standards as from 2027.

Strengthen your value chain with CSDDD

The Directive isn’t just a box-ticking exercise. Indeed, CSDDD mandates companies to identify and address human rights and environmental risks throughout their operations, subsidiaries, and supply chains; and implement a climate transition plan to contribute to the EU’s goal of achieving carbon neutrality by 2050, as outlined in the Paris Agreement.

For companies willing to take proactive steps, this regulation represents an opportunity. By embedding sustainability into their core operations, businesses can enhance their resilience, build stronger value chains, and boost their reputation as ethical market leaders.

The Scrioo platform to simplify compliance with CSDDD

The Luxembourg Institute of Science and Technology (LIST) and CURE Intelligence have initiated the INTROSupply research project, co-funded by the Ministry of the Economy, where they developed the Scrioo platform, a supply chain risk management solution designed to simplify compliance with CSDDD and minimize disruption.

“The complexity of modern supply chains demands proactive solutions,” says Djamel Khadraoui, Head of Reliable Distributed Systems Unit at LIST. “Scrioo’s AI-driven risk detection and predictive capabilities from CURE Intelligence allow businesses to anticipate disruptions and address potential threats before they escalate, transforming compliance from a reactive process into a strategic advantage.”

The platform offers a data-driven risk detection using advanced Natural Language Processing and Machine Learning algorithms that can automatically scan, categorize, flag potential supply chain threats and predict disruptions which will enable companies to act before issues arise. Automated tools for generating compliance reports and conducting regulatory audits, ensuring businesses are always ready for scrutiny.

The EU Corporate Sustainability Due Diligence Directive is a wake-up call for businesses. Companies that embed sustainability into their operations will stand out in a market where ethical practices are the norm.

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