The Dutch Association of Investors for Sustainable Development (VBDO) has called for businesses and investors to embrace the EU Corporate Sustainability Due Diligence Directive (CSDDD) as an opportunity to drive transformative change in its latest report
Towards a Responsible Value Chain: The Role of Investors and the CSDDD paints a stark picture of the challenges facing modern supply chains, from climate change to systemic human rights abuses. Yet, it highlights how the CSDDD can be a powerful tool for addressing these issues, fostering corporate accountability and transparency while mitigating risks such as supply chain disruptions and reputational damage. With roughly €600bn in assets represented by surveyed investors, VBDO underscored the unique influence of the financial sector in driving this shift.
“The CSDDD provides a historic opportunity to build a sustainable and fair global economy. It is no longer enough to focus on shareholder value – responsible value chains benefit everyone, from workers and communities to the environment and the companies themselves,” said Angélique Laskewitz, executive director of VBDO. “We urge companies and investors to view this directive as a catalyst for collaboration, innovation, and leadership.”
The report stresses the need for greater collaboration among stakeholders, including governments, civil society organisations and affected communities. Companies and investors can address systemic challenges by engaging with these groups, from improving supplier transparency to ensuring human rights are respected throughout their operations. It also encourages businesses to adopt ambitious practices inspired by the OECD Due Diligence Guidance, emphasising that the directive is a starting point, not a finish line.
Therefore, VBDO is calling on companies to embrace the directive as a strategic opportunity and urges investors to educate themselves about the CSDDD’s implications for their portfolio companies. By working together, stakeholders can create value chains that are “resilient, equitable and future-proof”, it concluded.
Fairtrade Nederland, a key advocate for fair trade practices, also voiced its support for this call to action. “Companies and investors must act now to ensure that value creation is shared fairly across the supply chain. It is crucial that with CSDDD the social and environmental costs are not placed solely at the beginning of the chain but are fairly distributed throughout ‘’, according to Karen Bouwsma, senior policy advisor at Fairtrade Nederland.
Meanwhile, Suzan Cornelissen, programme manager, Indonesia, at CNV International, stressed that ‘’freedom of association and workers’ rights are critical components of a sustainable value chain”.
“The CSDDD compels companies to confront these issues, but real progress requires meaningful engagement with local unions and communities.”
