Navigating the New Terrain: How US Companies Can Prepare for EU ESG Directives

Navigating new terrain: US companies' preparation for EU ESG directives. Ensuring compliance and sustainability alignment.

The European Union (EU) is poised to introduce two game-changing directives: the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD). These directives will compel companies to report on their environmental and human rights impacts, ushering in a new era of global corporate responsibility. US companies, even if not directly affected, should proactively assess their operations and value chains to stay ahead of the curve and maintain a competitive edge in the evolving global market.

Global Supply Chain Due Diligence Laws

Due to increased pressure from investors and consumers, as well as a very unstable global market, the past few years have seen a broader adoption of ESG transparency policies—including supply chain due diligence.

The Supplier Code of Conduct: Is It Still Enough?

Creating and implementing a code of conduct enables companies to prevent some supply chain risks and safeguard their reputation. It can even translate into a competitive advantage when scouting for a proper supplier.