Germany is showing continued support for sustainable and responsible global trade practices by calling for a more streamlined and business-friendly implementation of the European Union’s Corporate Sustainability Due Diligence Directive (CSDDD). Rather than opposing the legislation, the country is focusing on reducing bureaucracy while keeping the law’s essential purpose intact—strengthening ethical and environmental standards across supply chains.
The CSDDD, adopted in 2024 and now scheduled for full implementation by 2028, encourages companies to take accountability for human rights and environmental impacts throughout their upstream and downstream supply chain activities. This includes addressing issues such as forced labor, deforestation, and pollution while promoting transparency and long-term resilience.
Germany’s clarification signals an intention to work with the European Commission to refine the directive in ways that maintain its effectiveness without overwhelming businesses—especially small enterprises—with excessive administrative tasks. Among the proposed adjustments are focusing due diligence on direct business partners and reducing the frequency of certain reporting requirements.
By aligning with the EU’s broader efforts to simplify sustainability regulations, Germany is helping to pave the way for a more agile, practical, and scalable supply chain compliance environment. These changes aim to foster responsible sourcing while keeping European companies competitive and capable of meeting global demand.
This direction underscores a growing consensus: sustainability in the supply chain is not only a regulatory responsibility but also a strategic advantage for resilient, future-ready operations.
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