Preventive & corrective actions

Preventive & corrective actions

This Directive establishes a corporate due diligence duty. The core elements of this duty are identifying, bringing to an end, preventing, mitigating and accounting for negative human rights and environmental impacts in the company’s own operations, their subsidiaries and their value chains.

Concrete Action plan to mitigate identified risk

The CSDDD contains a risk-based approach. If actual or potential impacts are identified companies must create an action plan to collaboratively work with their partners to address risks and improve performance.  Therefore, an in-scope company only has the obligation to take measures if it is directly responsible for the CSDDD-risks.

EU member states will have to ensure that companies take appropriate measures to carry out effective engagement with stakeholders, as part of the due diligence process under the CSDDD.