Key Points
The European Council recently approved the EUs Corporate Sustainability Due Diligence Directive (CSDDD), a due-diligence requirement that creates a legal liability for EU-based firms arising from any environmental and human-rights violations (including labour rights) within their supply chains..
Indian exporters are still grappling with the European Unions Carbon Border Adjustment Mechanism (CBAM) that will effectively tax our carbon-intensive industries serving EU markets..
Upstream business partners include suppliers of goods and providers of services to a compliance-bound companybe it related to design, extraction, sourcing or the manufacture of a product or fulfilment of a serviceamong others..
The CSDDD can drive positive business externalities for India by attracting foreign direct investment from the EU through local adherence to human rights and environmental standards..
However, actions deemed sustainable domestically may not meet CSDDD standards, as seen in criticism of Indias Green Credits Programmes tree plantation guidelines..
