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The European Commission’s forthcoming guidance on the Corporate Sustainability Due Diligence Directive (CS3D) should:

• allow companies to voluntarily prioritise chains of activities with a meaningful connection, which should be further defined in the guidance, to the EU or based on a global risk-based approach in cases where companies have global integrated supply chains;

• recognise that companies may face conflicting or overlapping legal requirements between EU and third-country legislation, particularly in relation to information gathering, audits, data transfers, supplier disengagement and cooperation with authorities;

• clarify how companies should document and manage circumstances in which third-country law restricts or prevents a due diligence measure;

• recognise interactions with competent local authorities, regulatory inspections, permits, licences and other official approvals as potentially relevant sources of due diligence information; and

• protect companies from liability where they have followed a reasonable, documented and good-faith process, including where another stakeholder might have prioritised risks or selected due diligence measures differently.

• If these measures are included in the guidance, they would help the CS3D deliver meaningful and effective due diligence, rather than an exhaustive mapping of every global business relationship. Flexibility, proportionality and legal certainty can help companies progressively develop credible global systems while directing resources towards the most significant risks and the areas where they have the greatest ability to achieve positive outcomes.

Learn more in our contribution and paper.

How can Europe strengthen its digital resilience while remaining open to the partnerships that drive AI innovation? On Wednesday, 17 June, Malte Lohan, CEO, AmCham EU, addressed this at a conference organised by the Cypriot Presidency of the Council of the EU in Nicosia, Cyprus. Discussions focused on how Europe can build a more resilient digital ecosystem while remaining an attractive destination for investment and innovation. Mr Lohan underlined that secure supply chains and trusted partnerships are essential to Europe’s AI competitiveness. He also highlighted the role of US businesses as committed partners in helping Europe build and compete globally, while stressing the need for balanced policies that strengthen resilience and give companies the confidence to invest in Europe.