The CSDDD: towards an economy that works for people

The concept of ‘an economy that works for people’ is closely linked to the European Green Deal, focusing on sustainability, equity, and social wellbeing. By integrating these principles, the European Green Deal contributes to the broader goal of an economy that works for people, ensuring a fair, sustainable, and prosperous future. In this blog, we take a closer look at the Corporate Social Due Diligence Directive: a crucial directive that aims to address the industry’s environmental and social impact.

The Corporate Social Due Diligence Directive (CSDDD)

The CSDDD is one of the EU’s central sustainability laws. It requires companies to conduct thorough due diligence on human rights and environmental impacts across the entire value chain. Its aim is to identify, prevent and eliminate negative effects. 

The CSDDD is linked to the European Green Deal’s aim of transforming the EU into a modern, resource-efficient and competitive economy as it seeks greater alignment between corporate activities and broader social and environmental goals.

Given the textile industry’s reputation for having a significant social and environmental impact, the CSDDD is supporting the industry's shift towards meeting the growing demand for more transparent, equitable and sustainable supply chains.

After a two-and-half-year legislative journey, the CSDDD has been formally adopted, and was published in the EU Official Journal on 5 July 2024. The CSDDD must be transposed by Member States into national law by 26 July 2026. Countries like Germany have already integrated similar directives into national law. 

Increased accountability and transparency within supply chains

The PPE textiles industry often has complex, multi-tiered supply chains spanning several countries, making responsible sourcing and ethical practices a challenge. The CSDDD encourages transparency and accountability, requiring companies to trace and assess risks across their entire supply chain.

In the PPE industry, transparency and accountability are already becoming the norm. Programs such as OEKO-TEX^® 100, OEKO-TEX^® STeP, and OEKO-TEX^® MADE IN GREEN are increasingly recognized as EU standards for workwear and PPE. Many large spinning and weaving mills have integrated these certifications into their operations. Independently audited, these programs strengthen oversight of environmental performance and social responsibility, while minimizing risks. Regularly updated requirements drive continuous quality improvements, ensuring compliance with strict policies and fostering greater accountability throughout the PPE clothing supply chain.

Improvements in labour rights and human rights

The textile industry has historically faced issues related to labour rights, such as poor working conditions, child labour, and exploitation. CSDDD mandates companies to identify and mitigate human rights risks, helping ensure that workers in the textile industry are treated fairly and have their rights respected.

Environmental impact

The textile industry has a significant environmental footprint, including water pollution, high energy consumption, and waste generation. CSDDD addresses these issues by encouraging companies to consider their environmental impact and take steps to reduce it. This includes assessing the use of chemicals, reducing emissions, and adopting sustainable practices.

The PPE textile production industry is already ahead in this process. By working with certified, reputable fibre suppliers, risks related to labour rights, human rights, and environmental impact are minimized. Raw materials for PPE textiles, such as high-tech fibres and chemicals, are often sourced from producers with proven compliance and strong due diligence track records. Even for conventional materials like cotton and polyester used in workwear, suppliers are typically compliant with social and environmental regulations, further mitigating risks.

Additionally, the PPE sector benefits from transparency across the value chain, which sets it apart from consumer textiles like fashion clothing and bedding. Technical textiles are complex, high-quality products designed for durability. Safety wear collections do not change frequently, and garments are often custom-made and maintained through industrial laundry programs, extending their lifespan and promoting sustainable use.

Consumer awareness and demand for sustainability

Today's consumers are increasingly aware of sustainability and ethical practices in the products they buy. The CSDDD encourages textile companies to adopt more sustainable and ethical practices, and to provide greater transparency around these. This fosters trust between the textile company and the buyer, which can in turn improve brand reputation and customer loyalty.

Risk management 

Compliance with CSDDD can reduce legal and reputation-based risks for textile companies. By proactively addressing social and environmental issues, companies can avoid scandals, lawsuits, and other risks associated with unethical practices.

Alignment with global standards

CSDDD aligns with global standards like the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises. This alignment helps textile companies navigate international regulations and maintain consistency in their operations.

A key step forward for PPE textiles

Overall, the implementation of CSDDD within the textile industry is a key step toward the concept of an economy that works for people. In doing so, textile companies can contribute to a more ethical, sustainable, and responsible industry while meeting the expectations of stakeholders and consumers.

Keen to find out more?

If you'd like to learn more about an economy that works for the people, or CSDDD in more detail, please feel free to get in touch — one our advisers will be happy to talk further with you.