FERMA’s comments on the EU Corporate Sustainability Due Diligence Directive proposal and its practical shortcomings: the good, the bad, and

24 May 2022

European risk managers welcome the Commission’s CSDD proposal to achieve more sustainable governance for big companies but warn about its possible practical challenges regarding implementation and call for a more risk-based and proportionate approach.

 FERMA welcomes the EUs objective of instilling long-term corporate sustainability in corporate governance through its Corporate sustainability due diligence (CSDD) proposal. FERMA believes a corporate culture that embraces Enterprise Risk Management (ERM) is a fundamental factor for sustainability.

However, FERMA warns the European Commission about two shortcomings in its proposal:

FERMA sees a trilemma emerging with regards to the value chain, its implementation, and practical consequences:

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