Navigating the growing requirements of EU sustainability legislation
21st August 2024
Overview
FSA Strategy Report
Read SAI Platform’s FSA EU CSDDD Strategy Report “The Intersection of the FSA and EU Corporate Sustainability Due Diligence Directive”
SAI Platform is pleased to announce the development of a new Farm Sustainability Assessment (FSA) module that will offer targeted support to assist members in addressing the requirements of the European Union’s Corporate Sustainability Due Diligence Directive (CSDDD).
New legislation is intensifying the focus on companies’ sourcing practices, particularly in terms of sustainability. The CSDDD in particular, will significantly impact the reporting processes within agricultural value chain. This regulation mandates that companies actively identify, prevent, and mitigate adverse human rights and environmental impacts within their supply chains. With full implementation expected by 2027, businesses, including non-EU entities with substantial EU operations, must prepare to comply with these rigorous requirements.
“By developing a dedicated module to support CSDDD alignment, we’re aiming to empower FSA users to lead the way in sustainable business practices. This tailored approach will ensure that our members can confidently navigate these new requirements, while continuing to drive positive impact within their supply chains.”
Joe Iveson, FSA Manager, SAI Platform.
SAI Platform recognises the critical role that the FSA plays in its members’ supply chains, serving as a tool to understand and address many of the issues which this legislation aims to tackle. In response to these developments, the FSA is developing a specialised module to assist its users in meeting the requirements of the CSDDD.
Understanding the CSDDD
The CSDDD mandates that large companies integrate due diligence practices into their business strategies, extending across all operations, including those beyond agriculture. Although the directive directly impacts large companies, small and medium-sized enterprises (SMEs) in their supply chains will also be significantly impacted.
The FSA offers companies valuable support in navigating the complexities of CSDDD compliance. However, a benchmarking analysis by Proforest highlighted some gaps in the FSA’s coverage of CSDDD, particularly in areas related to governance, human rights, and environmental impact.
SAI Platform’s Strategy: A CSDDD-Specific FSA Module
To address these gaps, SAI Platform is developing a dedicated FSA module to support users in meeting the CSDDD requirements. This module will focus on key aspects of the CSDDD, such as risk identification, prevention, and mitigation.
Designed as an optional addition to the FSA, it preserves the flexibility that our community values, while providing targeted support for those members needing to comply with the directive. Stakeholders will have the opportunity to provide feedback through a public consultation or on-farm audits, before the module’s anticipated release in December 2024.
As legislation like the CSDDD redefines corporate accountability, SAI Platform’s strategic initiatives, including the new FSA module and various enhancements, aim to support its members in meeting these obligations. By leveraging the FSA’s strengths and adapting to CSDDD requirements, SAI Platform equips businesses with essential tools to ensure compliance and drive sustainability across their operations.
If you would like more information about the module or would like to participate in the public consultation or on-farm pilots, please contact FSA Manager, Joe Iveson at jiveson@saiplatform.org