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The European Corporate Due Diligence and Corporate Accountability Act (CDDCA) is a proposed regulation that aims to establish a comprehensive framework for corporate due diligence and accountability across the EU.
The CDDCA will apply to large companies operating within the EU, as well as non-EU companies that provide goods or services to the EU market. These companies will be required to conduct due diligence on their operations and supply chains to identify and mitigate any risks of harm to people or the environment.
In order to comply with the CDDCA, businesses will need to:
Conduct due diligence: Companies will be required to conduct due diligence on their operations and supply chains to identify and mitigate any risks of harm to people or the environment. This may include assessing the impact of their operations on human rights, labour rights, the environment, and other factors.
Implement appropriate controls: Companies will need to implement appropriate controls to mitigate the risks identified in their due diligence assessments. This may include measures such as supplier codes of conduct, employee training programs, and grievance mechanisms for affected parties.
Report on due diligence: Companies will be required to report on their due diligence practices, including the steps taken to identify and mitigate risks of harm. This information may be reported publicly or to a regulatory authority.
Establish review processes: Companies will need to establish regular review processes to ensure that their due diligence practices remain effective and appropriate.