New EU Directive Enforces Stricter Accountability in Supply Chains

Companies that do not comply with the recently enacted EU Corporate Sustainability Due Diligence Directive, particularly those found to have human rights violations in their supply chains, could face fines of up to 5% of their global revenue. Non-EU firms may also face restricted access to the European market if they fail to meet these standards. "The regulation is not just a box-ticking exercise; it's about action, impact, and creating real change on the ground," explained Natasha Peacock, Partner & Associate Director of Socially Transformative Business at Boston Consulting Group. The directive mandates transparency across the entire supply chain, from "farm, factory, or field," highlighting that large companies cannot shift responsibility to smaller entities. Peacock emphasized that the regulation prevents larger companies from passing off their responsibilities to smaller partners within the supply