7 key takeaways on CSDDD and supply chain sustainability for 2026
Letizia La Sorte
Solutions Expert
14 Apr 2026
About 6 mins
We recently hosted a webinar exploring the shifting regulatory landscape for procurement and sustainability professionals. The session, featuring experts Charlotte Kincaid (ESG Policy Manager, Sedex), Elisa Molero (Senior Analyst, Verdantix), and a Sustainable Sourcing Manager from a global consumer goods brand, provided practical guidance on preparing for new regulations and other key developments in supply chain sustainability.
Insights and statistics referenced in this article are primarily drawn from the Verdantix Global Corporate Survey 2025, which highlights the latest trends in supply chain sustainability and procurement.
In addition to core European Union legislation, the discussion covered global factors shaping procurement. From increased regulations across APAC to economic and geopolitical turbulence, procurement professionals are facing a more complex environment. Practical case studies and statistics from leaders at a global consumer goods brand further illustrated how these forces translate into operational realities.
For those who couldn’t attend, we have compiled the essential takeaways. Here are seven key insights to help your team navigate the challenges and opportunities ahead.
1. The CSDDD timeline has shifted
The regulatory picture for 2026 is becoming clearer, offering less uncertainty than in previous years. A key update shared during our webinar is the delay in the CSDDD timeline. The main compliance deadline is now set for July 2029, with supporting guidelines expected by July 2027.
This revised schedule provides businesses with more time to prepare their due diligence processes. It allows for a more considered and structured implementation of the necessary changes to meet regulatory requirements.
2. Fewer companies are now in scope for CSDDD
Alongside the timeline change, the scope of the directive has narrowed significantly. The CSDDD will now apply to approximately 70% fewer companies than originally anticipated, the updated criteria target larger organisations.
The new thresholds are for companies with 5,000 or more employees and an annual turnover exceeding €1.5 billion. Hence, it is crucial for you to verify if your organisation falls within this revised scope, as this will determine your legal obligations under the new directive.
3. A risk-based approach is essential
The updated CSDDD emphasises a risk-based approach aligned with OECD guidelines, this requires moving human rights due diligence into a holistic risk management strategy, and should be embedded throughout the entire supply journey.
Your strategy should begin with a scoping exercise using existing data to identify inherent risks. For severe risks, you can use audits or self-assessment questionnaires for further analysis, as one of our speakers stated, “It’s important to focus on the salient inherent human rights risks that are present in your complex supply base.” By identifying and addressing these key risks, you can significantly strengthen your due diligence approach.
Practical examples from a global consumer goods brand reinforce the value of focusing on priority risk areas. One speaker shared that their team targets wide-ranging risk topics, including labour practices among migrant workers, working conditions in meat processing, and the management of third-party labour services. This approach helps operationalise risk-based due diligence in large, complex supply chains.
4. Visibility must extend beyond tier one
Future regulations will require companies to look far beyond their immediate tier one suppliers. You must gain visibility into both upstream and downstream activities across your value chain, and this broader scope may require structural changes within your organisation.
Many firms lack the strong supplier engagement needed to address social and environmental challenges effectively. Forced labour, for example, is a growing policy priority that demands deep supply chain transparency to tackle. The webinar highlighted the increasing momentum for forced labour regulation not only in Europe, but globally, including the USA’s Uyghur Forced Labour Prevention Act and new bans under review in Australia, Indonesia, and other countries throughout Asia-Pacific. These developments mean organisations must expect rigorous requirements across multiple jurisdictions.
As one speaker explained, “You need to look both upstream and downstream to truly understand your value chain and where your most pressing risks lie.” Understanding your entire supply chain is essential for identifying and addressing these risks.
5. Supplier engagement is critical for success
Data shared during the webinar shows that strong supplier relationships are now a business imperative: around 83% of firms are likely to stop working with a supplier due to poor sustainability performance. This clearly highlights the risk of inaction. (Verdantix Global Corporate Supply Chain Sustainability Survey 2025).
On the other hand, strong performance is rewarded. Verdantix reports that 92% of firms are likely to offer preferential terms to suppliers that demonstrate strong sustainability practices. Engaging your supplier network is a vital step toward building a resilient and sustainable supply chain (Verdantix Global Corporate Supply Chain Sustainability Survey 2025).
The discussion also addressed challenges in engaging suppliers, particularly those beyond tier one. As companies expand due diligence to logistics, distribution, and warehousing suppliers, they must use new collaboration models and tools. Companies such as Sedex have introduced solutions (SMETA for Service Providers) for suppliers with no fixed work location, supporting visibility and engagement where conventional audits may not apply.
6. Digital tools and AI are accelerating progress
Technology is proving instrumental in managing complex due diligence requirements. Verdantix reveal that 59% of firms are investing in solutions to enhance supply chain transparency and traceability, while 60% are leveraging AI to automate reporting and improve data accuracy (Verdantix Global ESG & Sustainability Survey 2025). These digital tools not only generate actionable insights for performance improvement but also ensure consistent ESG data collection across supplier networks, accelerating the adoption of AI-driven compliance solutions.
A key theme discussed was the move from annual to continuous monitoring. As one speaker noted, “Continuous monitoring, enabled by digital tools, means you can respond to risks as they emerge rather than relying on static, annual assessments.” Technology’s real value lies in integrating risk intelligence into procurement decision-making, not just collecting data for its own sake.
7. Internal collaboration is the first step
Effective supply chain due diligence starts within your own organisation. As Charlotte Kincaid advised, “Finding clear roles and responsibilities internally is the foundation for effective due diligence.” Our speakers also emphasised the importance of coordination across different functions and noted that “targeted training is essential for equipping procurement teams to engage suppliers on sustainability topics.”
The importance of internal alignment was reinforced by practical insights, one speaker from a consumer goods brand described its structured approach, with dedicated champions embedded across procurement teams, regular training, and ongoing dialogue as core elements of their human rights due diligence efforts.
Verdantix show that many companies are already making progress: currently, 73% of firms have integrated sustainability criteria into procurement, and 51% report collaboration between procurement and sustainability teams. This internal alignment provides a solid foundation for building a compliant and resilient supply chain.
Take the next step in your due diligence journey
Sedex can support your efforts to advance supply chain sustainability and compliance. Explore our range of insights, tools, and services designed to help you navigate evolving regulatory requirements and achieve your business objectives.
Find out more about CSDDD by visiting our dedicated CSDDD hub
If you have questions or need tailored guidance, contact our team:
FAQs
