The Corporate Sustainability Due Diligence Directive (CSDDD), passed in 2024, requires large companies operating in Europe to take responsibility for identifying and preventing risks of forced labor within their supply chains.

The Supply Chain Act lists seven specific due diligence obligations that a company must comply with:

• Companies must establish, publish, and eBectively implement a vigilance plan. This plan aims to identify and prevent risks of human rights violations, environmental damage, health and safety issues, and corruption within their own operations and throughout their supply chain.
• The vigilance plan must include risk mapping that identifies, analyzes, and ranks risks.
• The vigilance plan must include procedures for assessing the situation of subsidiaries, subcontractors, and suppliers.
• The vigilance plan must include appropriate actions to mitigate risks or prevent serious violations.
• The vigilance plan must include an alert mechanism for reporting potential or actual risks.
• The vigilance plan must include a monitoring scheme to follow up on the implementation and eBectiveness of measures.
• Companies must publish their vigilance plans and provide annual updates on their implementation and eBectiveness. These reports should be accessible to the public.