VIKAND, in collaboration with other key maritime stakeholders, has published an analysis to advise the maritime industry on its obligations to comply with two new EU sustainability supply chain laws.
Implications of the EU Sustainability Directives
The two directives are the Corporate Sustainability Due Diligence Directive (CSDDD), also known as the EU Supply Chain Act, which was adopted on 24 May 2024 and the newly enacted EU Corporate Sustainability Reporting Directive (CSRD).
With the EU Supply Chain Act taking effect in 2025 and the CSRD already in place, VIKAND felt it was right to outline the key requirements of maritime companies to avoid non-compliance and potential business disruption.
The new EU laws require companies to manage the social and environmental effects of their entire value chain, including direct and indirect suppliers, as well as their own operations.
The analysis helps outline the key steps necessary to ensure those affected companies fulfil their corporate due diligence obligations along the supply chain regarding human rights and the environment.
Both the CSDDD and the CSRD could potentially impose material consequences, with fines reaching up to 5% of annual net worldwide revenue. This reflects a global shift towards holding companies not only being accountable for their own operations but also for the actions of their subsidiaries right across their entire value chains.
“Thank you to all the contributors who were instrumental in bringing this analysis to fruition”, said John Prell, one of the co-authors of the paper and Assistant General Counsel for VIKAND. “The future is now. The new EU Supply Chain laws build upon recent maritime regulations, including the latest MLC Amendments, and serve as a call to action for maritime companies, as well as all industries, to prioritise and address seafarer welfare.”
Access VIKAND’s paper HERE
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Source: VIKAND
