Tech Policy Press reposted this
A misperception has emerged that the EU Corporate Sustainability Due Diligence Directive (CS3D) does not cover a company’s downstream impacts—but it does, which is significant for technology companies. This confusion stems from language inserted into the CS3D as a political compromise to satisfy companies worried about tracking the impacts of third parties with whom they do business. However, the resulting exclusion only applies to “business partners”, leaving other downstream impacts arising from the use of a company's products and services as in scope. When reviewing how the CS3D applies to their business models and operations, technology companies should assess potential adverse impacts arising from the downstream use of their products and services and make relevant modifications to their business plans, strategies, operations, products, and services to address these impacts. Jason Pielemeier of Global Network Initiative and I demystify in this Tech Policy Press article. #bizhumanrights #cs3d #csddd #csrd
Earlier this year, the #EU enacted the Corporate #Sustainability Due Diligence Directive (CS3D). Dunstan Allison-Hope & Jason Pielemeier unpack how the CS3D applies to tech companies, including the downstream impacts arising from their operations.
Lawyer, Strategy, Risk, Citizen
11hWhat happens to a company if it does not or cannot "assess potential adverse impacts arising from the downstream use of their products and services and make relevant modifications to their business plans, strategies, operations, products, and services to address these impacts.? I mean it covers "potential" and actual impacts? So what would a chainsaw manufacturer be liable to do? This is silly. If the EU has the political authority and economic courage to simply tell companies that make anything that can be foreseeably misused to stop it, then they should get on with it. But they don't. So companies are left with these compliance exercises that sort of require remedial action but don't really say it and certainly couldn't be enforced if they did. These exercises are damaging the very foundation of managing material environmental risks.