As an extension of the CSRD (Corporate Sustainability Reporting Directive), which strengthens extra-financial reporting obligations, a second European directive also linked to corporate social responsibility (CSR) issues will come into force on 1er January 2025, on data from the 2024 financial year. Also adopted last summer, this CSDD (Corporate Sustainability Due Diligence) Directive goes further than the “simple” publication of information by requiring companies to implement of a vigilance plan for prevent risks environmental, social and governance aspects inherent to their activities, throughout their value chain. As such, purchasing information systems will have to strengthen their mechanisms for taking into account CSR data and managing associated monitoring measures, internally but also in the business relationship with subcontractors and suppliers. Initially, only large companies and mid-sized companies will be affected, before a gradual extension to SMEs listed on European markets.
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As an extension of the CSRD (Corporate Sustainability Reporting Directive), which considerably strengthens extra-financial reporting obligations, a second European directive, closely linked to corporate social responsibility (CSR) issues, will come into force on January 1, 2025, on data from the 2024 financial year. Also adopted last summer, this CSDD (Corporate Sustainability Due Diligence) Directive goes well beyond the simple publication of information, by requiring companies to implement a comprehensive vigilance plan. This plan aims to prevent environmental, social and governance risks inherent to their activities throughout their value chain.
In this regard, purchasing information systems find themselves at a crossroads, needing to substantially strengthen their mechanisms for taking into account CSR data and managing associated monitoring measures. This applies not only internally, where transparency and accountability become major imperatives, but also in the commercial relationship with subcontractors and suppliers. This new directive thus establishes a proactive approach, requiring companies to anticipate, evaluate and mitigate potential risks linked to their activities, while encouraging sustainable and ethical management.
Initially, only large companies and mid-sized companies will be directly affected by these new obligations, thus marking a first phase of progressive implementation. However, it is important to note that this scope will gradually extend to SMEs listed on European markets, thus accentuating the importance of commitment to social responsibility across the entire spectrum of economic actors. This regulatory development highlights the need for a profound transformation of commercial practices towards a more sustainable and responsible vision, where transparency and ethics become essential pillars of organizational success.