EU Directive on Corporate Due Diligence and Corporate Accountability
Assess supply chain partner human rights and environmental practices
In March 2021, the European Parliament published a draft directive that introduced mandatory corporate due diligence requirements in areas such as human rights and environmental practices in an organization's supply chain.
As part of the directive, any organization in the European Union (EU) - whether private, state-owned or publicly-listed - would be required to, "identify and assess potential or actual impacts on human rights, the environment or good governance caused by, contributing to or linked to their operations or business relationships, using a risk-based monitoring methodology that takes into account the impact, nature and context of the undertaking’s operations," and, "review business relationships for the same risks."
Although the directive is not yet law, it is important that any organization that does business in the EU begin assessing their supply chain partners' human rights and environmental practices and develop remediations to mitigate any potential financial, legal or reputational risks before they arise.
Relevant Requirements
-
Conduct due diligence according to the likelihood and severity of adverse impacts
-
Publish a statement, including the risk assessment, data and methodology, concluding that the company does not cause, contribute to and is not directly linked to adverse human rights or environmental impacts
-
Establish and implement a due diligence strategy, reviewed annually
-
Verify that subcontractors and suppliers comply with obligations
Align Your TPRM Program with Expanding ESG Regulations
Download this guide to review current and future ESG standards and legislation, and learn how to prepare your TPRM program for compliance.
Meeting EU Directive on Corporate Due Diligence and Corporate Accountability Requirements with the Prevalent TPRM Platform
-
Supplier Pre-Screening
Rapidly pre-screen vendors using a library of continuously updated risk profiles based on inherent/residual risk, completed assessment results and real-time reputational monitoring.
-
Comprehensive Supplier Profile
Tap into 550,000+ sources of vendor intelligence to build a comprehensive supplier profile that includes industry and business insights and maps 4th-party dependencies.
-
Inherent Risk Scoring
Use a simple assessment with clear scoring to track and quantify inherent risks and determine the right assessment approach.
-
Assessment Library
Leverage Prevalent's built-in Modern Slavery and environmental assessments to determine adherence to policies. Review and approve assessment responses to automatically register risks or reject responses and request additional input.
-
Document & Evidence Management
Store and manage policy documents, evidence and more for dialog and attestation.
-
Supplier Reputation Monitoring
Access qualitative insights from over 550,000 public and private sources of reputational information, including negative news, regulatory and legal actions, adverse media, conflicts of interest and more.
-
Global Sanctions Monitoring
Simultaneously screen against the world’s most important sanctions lists (including OFAC, EU, UN, BOE, FBI, BIS, etc.), over 1,000 global enforcement lists, and court filings (such as the FDA, US HHS, UK FSA, SEC and more) to proactively identify prohibited business relationships.
-
Relationship Mapping
Identify relationships between your organization and third, fourth and Nth parties to discover dependencies and risks in your extended vendor ecosystem.
-
Central Risk Register
Normalize, correlate and analyze assessment results and continuous monitoring intelligence for unified reporting and remediation.
-
Built-in Remediation Guidance
Take actionable steps to reduce vendor risk with built-in remediation recommendations and guidance.
-
Compliance Reporting
Visualize and address compliance requirements by automatically mapping assessment results to any regulation or framework.
How Does ESG Fit Into Your TPRM Program?
Our 14-page guide shares a best practices framework for incorporating ESG into your third-party risk management program.
-
Blog PostModern Slavery Risk Assessments in the Extended Enterprise: A Quick...
New legislation aims to improve enforcement over modern slavery violations. How much visibility do you have...
-
Blog Post
ESG Compliance: Understanding the Patchwork of ESG Regulations
Discover key insights into ESG compliance, focusing on third-party risk management, adherence to regulations, and an...
-
Blog Post
EU Draft Directive on Corporate Due Diligence and Corporate Accountability...
This regulation will require organizations to report on their suppliers' human rights and environmental practices. Here’s...
-
Ready for a demo?
- Schedule a free personalized solution demonstration to see if Prevalent is a fit for you.
- Request a Demo