Supply Chain Due Diligence (CSDDD / EUDR)
Supply chain due diligence, This is a duty of care to identify and prevent human rights and environmental negative impacts in your supply chain. With CSDDD and EUDR, these obligations are becoming mandatory for many companies. AES Innovation, with its expert staff It establishes this process.
Short answer: Supply chain due diligence maps supplier and country risks, assesses deforestation and human rights risks, and establishes a corrective action and reporting system. It is fundamental to compliance with CSDDD (2024/1760) and EUDR (2023/1115).
What is Supply Chain Due Diligence?
It is the process by which a company identifies, prevents, reduces, and is accountable for the negative environmental and social impacts arising from its operations and business relationships. It is a risk-based and continuous cycle.
Scope and Relevant Regulation
| Stage | Activity | Relevant regulation |
|---|---|---|
| Risk mapping | Supplier and country/sector risk | CSDDD (Directive (EU) 2024/1760) |
| Deforestation | Geographic location and traceability (DDS) | EUDR (Regulation (EU) 2023/1115) |
| Prevention and monitoring | Corrective action and monitoring | CSDDD |
| Reporting | Statement of duty of care | Compliant with CSDD/CSRD. |
Installation Process
- Supplier mapping: Supply chain layers and critical suppliers
- Risk assessment: Country, sector, and supplier-based risks.
- Contingency plan: Policy, contract terms and corrective action
- Control: Verification through second-party audits.
- Reporting: Declaration and continuous monitoring
Why AES Innovation?
- Due diligence integrated with second-party auditing capability.
- Current requirements tracking in CSDDD and EUDR.
- Risk-based, practical, and auditable system.
- Suitable for exporter supply chains.
This service falls under the scope of independent expert consultancy. For technical (facility/infrastructure) condition assessment. Technical Due Diligence Check out our page.
Related Services
- Second Party (Supplier) Audits
- Legal Compliance Assessment
- Digital Product Passport (DPP)
- Compliance & Due Diligence Consulting
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Frequently Asked Questions
What is CSDDD and who does it cover?
The Corporate Sustainability Duty of Care Directive (CSDDD) (EU 2024/1760) imposes an obligation on companies of a certain size to identify, prevent, and report on negative human rights and environmental impacts in their activities and business chains. The scope is determined according to company size and turnover thresholds and is transposed into national legislation by member states.
How does the EUDR (Deforestation Regulation) affect us?
EUDR ((EU) 2023/1115) requires products such as soy, coffee, cocoa, palm oil, rubber, cattle and timber to prove that they are free from deforestation when placed on the EU market, by providing geographical location data and a due diligence statement (DDS).
What does a supply chain due diligence setup include?
Supplier mapping includes country and industry risk assessment, second-party supplier audits, corrective action plans, and diligence statement reporting. AES Innovation provides independent consulting to help you systematically establish this process.
What is its relationship with CSRD?
Due diligence findings and implemented measures feed into sustainability reporting under the Corporate Sustainability Reporting Directive (CSRD); the two frameworks complement each other.
Free: Supply Chain DD & Audit Guide
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