Employment Litigation and Counseling Senior Associate Brigitte Weaver spoke with FinOps Report about the EU's new Corporate Sustainability Due Diligence Directive (CS3D), which mandates that financial firms and other businesses operating in the EU enforce human rights, biodiversity and environmental standards throughout their supply chains. Brigitte highlighted the differences between the UK's Modern Slavery Act and the CS3D, stating, "Unlike the CS3D, the UK's Modern Slavery Act does not require firms to actually perform due diligence on suppliers. Firms only have to report on what actions they have or have not taken."
Because CS3D requires firms to perform thorough due diligence on their supply chains to prevent human rights violations, she notes that C-suite executives will need to make this a priority and budget accordingly. Brigitte said, "Compliance directors need to care about human rights because they must be prepared to ask the tough questions for due diligence and deal with any unpleasant responses. Compliance with the CS3D can't be a check-the-box exercise."
"Business of Human Rights in New EU Reg," FinOps Report, November 26, 2024
London
