On July 20, the Society submitted its response to the European Commission's public consultation on guidelines supporting implementation of the Corporate Sustainability Due Diligence Directive (CS3D). The Commission sought stakeholder feedback through an online survey covering implementation of the Directive's due diligence obligations, including risk identification and assessment, model contractual clauses, digital tools, industry initiatives, information-sharing, supervisory approaches, and other key implementation topics.
Building on the Society's prior advocacy regarding the CS3D, the Society's submission encourages implementation guidance that is practical, risk-based, and proportionate, while recognizing the realities facing multinational companies operating across multiple jurisdictions. Among other recommendations, the Society encourages the Commission to leverage existing governance, enterprise risk management, compliance, procurement, and internal control processes; provide practical examples and implementation guidance for companies operating under different legal regimes; promote interoperability, standardized approaches, and centralized information resources to reduce unnecessary duplication; and recognize the importance of legal certainty, flexibility, and reliance on reasonably available information in implementing effective due diligence.
The Society greatly appreciates the extraordinary assistance provided by Jones Day in developing an initial set of draft responses that served as the foundation for the Society's submission. The Society also thanks members of its EU Sustainability Working Group, whose thoughtful review and practical implementation perspectives helped refine and strengthen the Society's final responses.
This post first appeared in the weekly Society Alert!