Sedex: Preparing Businesses Supply Chains for The EU’s CSDDD

Businesses are facing growing pressure to improve supply chain transparency and meet evolving ESG regulations.

The European Union's Corporate Sustainability Due Diligence Directive (CSDDD) is raising expectations around human rights and environmental due diligence, requiring organisations to take a more proactive approach to managing risk and creating sustainable supply chains. 

Sedex provides the technology, expertise and services businesses need to navigate these evolving requirements while building sustainable, more responsible supply chains.

Supporting CSDDD compliance with Sedex

While some sustainability regulations have been revised or delayed, the demand for responsible business practices continues to grow. 

Businesses operating internationally must navigate a complex regulatory environment, with legislation emerging across multiple regions.

In the US, state-level laws such as California's Transparency in Supply Chains Act hold organisations accountable for supply chain practices, while California, Washington and New York are introducing Extended Producer Responsibility (EPR) legislation requiring businesses to take greater responsibility for packaging waste and recycling. 

Globally, countries including Thailand, Australia, the UK and India are strengthening regulations around supply chain due diligence, modern slavery and ESG reporting. 

China has also committed to more ambitious climate goals, signalling that sustainability expectations are becoming increasingly embedded across international markets.

“Extreme heat is impossible to ignore at the moment and its impacts aren’t going anywhere. Plenty of us are lucky enough to work in well-cooled homes and offices, but what about those in supply chains?” writes Jon Hancock, CEO of Sedex, on LinkedIn.

“The International Labour Organization estimates 70% of the global workforce is exposed to severe heat. Research shows and many operators can attest, that productivity falls as temperature rises.

"Manufacturing accounts for some of the highest rates of heat-related illness claims.”

The European Union (EU) remains at the forefront of sustainability legislation. 

Alongside the CSDDD, regulations including the EU Forced Labour Regulation and the Deforestation Regulation require businesses to identify, assess and address environmental and human rights risks throughout their supply chains. 

Sedex helps organisations prepare for these evolving requirements by providing greater supply chain visibility, sustainability data, supplier engagement tools and risk assessment capabilities that simplify due diligence and support ongoing compliance.

Providing expert sustainability support

Regulatory compliance is a small part of the sustainability challenge.

Climate change, geopolitical uncertainty and evolving labour risks continue to disrupt global supply chains, making resilience an essential business priority.

Extreme weather events, rising temperatures and resource pressures are already affecting business operations worldwide, contributing to increased absenteeism, higher energy and water costs, operational disruptions and reduced productivity. 

At the same time, changing trade policies and shifting sourcing strategies are placing additional pressure on suppliers. 

Sudden order cancellations, production changes or supplier transitions can have significant consequences for workers throughout the supply chain, increasing the risk of poor labour conditions, excessive working hours and forced labour, particularly among vulnerable migrant workers.

Sedex enables organisations to identify these risks before they become business-critical issues. 

Through supplier mapping, risk assessments, sustainability data collection, supplier engagement and continuous monitoring, businesses gain the visibility needed to strengthen resilience while protecting both people and the environment. 

By embedding responsible sourcing into procurement and supplier management processes, organisations can respond to disruption without compromising ethical standards.

Responsible supply chains

Sustainability is increasingly recognised as a driver of long-term business success.

Consumers expect organisations to act responsibly, with many believing businesses should play a leading role in tackling climate change. 

Investors are also placing greater emphasis on ESG performance, recognising that climate-related risks and supply chain disruptions can have a direct impact on financial performance and long-term resilience.

“These are not theoretical risks - they’re right here, right now, in owned and supply chain operations,” writes Jon on LinkedIn.

“Even quick, affordable measures help to mitigate the impact, from standing fans to informal breaks that allow workers to self-regulate hydration and rest.

“Our customers already hold relevant data in supplier SAQs and audit reports. 

“I encourage you to look at where gaps may exist at locations in high-risk areas for extreme temperatures this quarter, summer, in the Northern Hemisphere, to support mitigation at the earliest opportunity, knowing such support will be valuable for years to come.”

The global green economy continues to expand rapidly, creating significant opportunities for organisations that invest in sustainable business practices. 

Companies that proactively manage environmental and human rights risks are better positioned to strengthen stakeholder trust, protect their reputation and remain competitive in an evolving marketplace.

Sedex supports businesses throughout this journey by combining its leading sustainability platform with expert Sustainability Coordinators who act as an extension of internal teams. 

From supplier compliance strategies and audit management to ESG reporting, risk analysis and continuous improvement programmes, Sedex provides organisations with the expertise and technology needed to build transparent, responsible supply chains.