Webinar hosted by the GAIL Europe Regional Board

As part of London Climate Action Week, this webinar was for legal professionals dedicated to advancing supply chain and procurement sustainability. The GAIL Europe Board explored the latest tools and strategies for enhancing sustainability with a focus on implementing the Corporate Sustainability Due Diligence Directive (CSDDD). The expert panel covered model clauses, extraterritoriality applications, and other essential legal tools to effectively support supply chain sustainability initiatives.

Featuring;

Roberto Randazzo (Moderator) from Legance
Stéphane Brabant from Trinity International
Angelica Bonfanti from Università degli Studi di Milano
Achille Calio Marincola from Legance
Martijn Scheltema from Pels Rijcken and
Vinicius Diniz Vizzotto from ASML Foundation.

Watch to:
– Discover the latest strategies for supply chain sustainability
– Gain insights on implementing the CSDDD
– Learn about essential legal tools and their applications
– Engage with industry leaders and network with peers

Digest – GAIL Europe Event – Implementing CSDDD: Legal Tools for Sustainable Supply Chains

Overview

This webinar explored the complexities and implications of the new European ESG regulatory framework, focusing on the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD). These regulations set new standards for corporate responsibility, emphasising sustainability and human rights due diligence.

Key Insights

1. Introduction and Context

   – The CSRD and CSDDD represent a revolutionary shift in ESG regulations.

   – The French Duty of Vigilance law influenced the development of these EU directives.

2. Public and Private Enforcement

   – Public enforcement by supervisory authorities is crucial for the directives’ effectiveness.

   – Private enforcement, particularly civil liability, poses challenges due to jurisdictional issues.

3. Extraterrestrial Reach

   – Non-EU companies must appoint EU representatives for compliance.

   – Jurisdictional complexities may affect the enforcement of civil liability for non-EU companies.

4. Implementation Challenges

   – Companies face significant challenges in implementing these directives, particularly in assessing and addressing human rights and environmental issues in their supply chains.

   – Effective public supervision should focus on practical, impact-oriented measures rather than purely administrative tasks.

5. Disclosure Obligations

   – Companies must disclose violations found in their supply chains, balancing reputational risk and legal compliance.

   – There are legal implications related to continuing relationships with suppliers violating human rights, including potential criminal liabilities in some jurisdictions.

6. Role of Supervisory Authorities

   – In Italy, the CONSOB is expected to be the supervisory authority.

   – Authorities must develop expertise in human rights and environmental issues to effectively oversee compliance.

7. Global Implications

   – The EU directives are influencing global ESG standards, with similar laws emerging in other jurisdictions.

   – Companies with global operations need to prepare for increased scrutiny and regulation across all markets.

Conclusion

The new European ESG regulatory framework demands active engagement from businesses in sustainability and human rights practices. While challenging, it presents opportunities for companies to lead in ethical and sustainable business practices. The role of supervisory authorities and the global impact of these regulations were highlighted as critical factors in their successful implementation.

Final Thoughts

– Ongoing engagement and adaptation are essential for businesses to navigate these regulatory changes.

– Collaboration between public authorities, businesses, and other stakeholders is vital for effective implementation and enforcement.

We look forward to continuing these discussions and providing further insights in future GAIL webinars.

Thank you to all the speakers and participants for their valuable contributions.