ESG Value Chain

Given the significant number of suppliers in the European Union and other countries and the overall complexity of value chains, EU companies may encounter difficulties in identifying and mitigating risks related to respect for human rights or environmental impacts in the value chains in which they participate.

The identification of such negative impacts in value chains is made easier if a greater number of organizations fulfill their duty of due diligence and, as a result, more data is available on human rights and environmental impacts.

The regulatory context is also adapting to these needs, with the EU Proposal for a Directive on Corporate Sustainability Due Diligence (CSDD) issued on February 23, 2022. Such proposal may force organizations to identify, prevent and mitigate negative impacts of their supply chain and, more generally, of the entire value chain they participate in.