CSR Europe Guides Members on EU Sustainability Compliance at 2-Day Atelier

 
 
 
 

With the Corporate Sustainability Reporting Directive (CSRD) now requiring comprehensive ESG disclosures, and the Corporate Sustainability Due Diligence Directive (CSDDD) introducing mandatory due diligence across entire value chains, companies are confronting increasingly complex demands in both reporting and measurement.

To overcome the practical implication of this regulatory shift, and its related implementation challenges, CSR Europe convened in Brussels its corporate members for a 2-day workshop. The two Atelier sessions focused on:

  • Stakeholder engagement for materiality assessment in the framework of the European Sustainability Reporting Standards (ESRS)

  • The complexities of due diligence, prevention, impact remediation, and grievance mechanisms.

The events encouraged collaborative discussions, drawing insights from a wide range of businesses, civil society representatives, and EU policymakers as they looked at concrete strategies for adapting to the EU’s evolving ESG demands.

Stakeholder Engagement: An Imperative within the EU Reporting Framework

The workshop on day one, part of the Atelier Series “Reporting on Social Performance”, emphasised the necessity of stakeholder engagement as a cornerstone of Double Materiality Assessments (DMA) and corporate due diligence obligations. In a packed room, attendees debated the practicalities of fostering continuous, in-depth dialogue with priority stakeholders, ultimately aiming to create robust systems that not only meet regulatory expectations but anticipate potential issues before they escalate.

Key takeaways included:

  • Structured, continuous engagement: Establishing and implementing a consistent and systematic approach to stakeholder engagement was identified as fundamental requirement, especially for gathering insights directly from priority groups.

  • Leveraging internal tools: Internal tracking systems should be used to facilitate stakeholder interactions, helping to identify risks early and establish long-term, effective relationships.

  • Direct engagement: In-person stakeholder dialogues were highlighted as uniquely valuable, fostering trust and leading to more impactful outcomes in the long-term.

  • Cross-unit coordination: Effective implementation of ESG plans requires close collaboration between ESG teams and other business units.

Mitigation and Remediation for Resilient Supply Chains

The next day, CSR Europe reconvened participants for a session of the “Due Diligence in Action” Atelier series. The workshop focused on practical strategies for risk mitigation and impact remediation - the critical third and fourth steps in the EU Due Diligence framework. Businesses joined civil society representatives and EU policymakers to share perspectives and discuss measures and solutions enabling companies to design and execute mitigation and remediation action plans, as well as to shape grievance mechanisms for effective restorations of complaint rights. The main challenges discussed included aligning actions with reporting requirements, achieving full visibility across supply chains, building workers' trust in grievance mechanisms, and reaching certain worker groups or remote communities.

Key insights included:

  • Risk-based mitigation and remediation: companies were urged to adopt risk-based frameworks to mitigate adverse impacts and engage with stakeholders through clear notification mechanisms. Failure to comply may result in legal accountability and financial liability for damages.

  • Support for SMEs: To ease the compliance burden, the CS3D offers streamlined assistance and resources for SMEs, including financial support and access to a unified EU helpdesk.

  • Grievance Mechanisms: A robust grievance mechanism is critical for addressing worker issues and preventing future harm, engaging local stakeholders, and ensuring victims receive appropriate remedies.

  • Corrective Action Plans: Effective remediation plans should address root causes, engage all relevant stakeholders, and prioritise long-term efficiency and sustainability.

  • Ongoing stakeholder engagement: Transparent, consistent, and responsive dialogue with stakeholders is essential for a successful due diligence process and grievance management.

Next Appointments

CSR Europe corporate members are invited to register and join the last sessions of the two Atelier series, taking place online. On 28 November, the last session of the Reporting on Social Performance Atelier will focus on ESRS for workforce reporting, providing guidance on meeting EU requirements for comprehensive workforce-related data. On 9 December, the Due Diligence in Action Atelier series will conclude with insights on monitoring and reporting due diligence practices, helping companies define key performance indicators and enhance external due diligence disclosures.

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