European Corporate Insights, July 2023: EU Supply Chain Act
Within the latest European Corporate Insights publication, titled EU Supply Chain Act, Andersen’s European Corporate and M&A team explores issues related to compliance assurance, human rights and environmental standards. The Highlights section of the paper features a section on Italy, career advancements of members of the firm, and major transactions completed by professionals.
In this issue, the focus is on promoting a fairer and more sustainable global economy, following the new directives proposed by the European Union and providing useful insights and tools for adopting responsible corporate governance practices.
The proposed European supply chain law, also known as CS3D, requires companies in the European Union to take all necessary steps to make their supply chains sustainable. This procedure will involve a thorough check on suppliers, who will therefore have to comply with certain requirements, limiting their environmental impact and ensuring respect for human rights.
The draft has already been adopted by the European Council in December 2022. The next step will be to draft the final text following a trialogue between the Council, Parliament and Commission. Once signed, EU member states will have two years to transpose the directive into their law.
Jurisdictions that are already putting these new provisions into practice-for example, Germany, which has proposed and adopted its own national supply chain law effective January 2023-will need to review and strengthen their legislation in any case.
Click here to read the publication.