As this article explains, while the Corporate Sustainability Due Diligence Directive (Directive) mainly targets in-scope companies, it also offers significant opportunities for SME supply chain business partners of the in-scope companies.
Non-compliance with the Directive can result in competitive disadvantages for business partners, penalties for in-scope companies (which, depending on the contract and circumstances, could be passed on to business partners), interim measures and reputational harm through “naming and shaming”.
Conversely, aligning with the Directive’s standards could not only strengthen relationships with in-scope companies but could also set partners apart in a competitive market. Early adaptation and collaborative efforts towards compliance can mitigate risks and open new avenues to growth, underpinning the transition towards a more sustainable and accountable corporate ecosystem.
As we have explained in prior posts, sustainability reporting will continue to expand. Smaller businesses will soon be required to report.
The question for SME leaders – If you care about the environment and want to be part of the solution, do you proactively become certified sustainable or do you wait and see if your lack of action hurts your business?
If you wish to use this to your advantage, read this on what you want in a sustainability program, watch this master class, and contact us.