"Have You Established a Workplace Safety Reporting Channel?"... KCCI Publishes 'EU Supply Chain Due Diligence' Guidebook

Effective from 2027... Self-Diagnosis Checklist Provided

The Korea Chamber of Commerce and Industry announced on the 3rd that it has published a human rights and environmental due diligence guideline handbook for companies entering the European Union (EU) market.

This handbook is expected to provide practical assistance to domestic companies responding to the EU's Corporate Sustainability Due Diligence Directive (CSDDD).

The EU supply chain due diligence directive mandates that large corporations must conduct due diligence on the environmental and human rights practices of their own companies and their partners. It came into effect on July 25 of this year.

This directive will also apply to domestic companies starting in 2027. Approximately 18,000 companies operating in the EU are expected to be directly affected.

'Supply Chain Due Diligence Guidelines Guidebook for EU Export Companies' Cover [Image Source=KCCI]

The handbook includes the main contents of the supply chain due diligence directive, its implementation progress, application timeline, and a step-by-step compliance guide for ESG practitioners.

It also provides a checklist for companies to self-assess, offering practical information to assist in the preparation process for due diligence.

The Korea Chamber of Commerce and Industry explained that this handbook clearly outlines the necessary preparations not only for domestic companies exporting to the EU but also for their partners, making it a useful resource for companies encountering EU supply chain regulations for the first time.

Key Checklist for Responding to EU Supply Chain Due Diligence Guidelines
[Image Source: Korea Chamber of Commerce and Industry]

In fact, Company A, an exporter to France, said, "We know that due diligence must be conducted in the areas of human rights and environment, but we do not know the specific items to be audited." Company B, an exporter to Germany, said, "Our company is a third-tier partner of a company exporting to the EU," and added, "We are curious whether the newly implemented supply chain due diligence directive applies to us as well."

The Korea Chamber of Commerce and Industry, which co-produced this handbook with EY Hanyoung, plans to continue providing various ESG content in the future.

The handbook can be downloaded for free from the Korea Chamber of Commerce and Industry's ESG platform, 'Eusseuk'.

This content was produced with the assistance of AI translation services.