Council Gives Green Light to Europe’s Corporate Sustainability Due Diligence Directive

A Major Step Forward for Global Business Ethics Alignment

For most businesses, corporate responsibility has evolved from a peripheral concern to a core consideration. And today, with the Council’s vote on the European Union (EU) Corporate Sustainability Due Diligence Directive (CSDDD), the EU took a significant step toward ensuring that businesses respect human rights, protect the environment, uphold ethical standards, and report on their efforts to do so.

Cisco’s long-standing commitment to corporate accountability

Upholding the highest ethical standards is not just a regulatory compliance matter, it is a business imperative.

Cisco welcomes the CSDDD as a crucial cross-EU tool to strengthen corporate attention to human rights and sustainability.

The CSDDD aligns with Cisco’s longstanding commitment to uphold human rights and conduct due diligence in our supply chain and internal operations in alignment with the United Nations Guiding Principles on Business and Human Rights and the Organisation for Economic Co-operation and Development Due Diligence Guidance for Responsible Business Conduct.

As proof of our commitment through actions, Cisco was listed 3rd out of 60 ICT companies on Know the Chain’s benchmark, which assesses companies’ ability to manage human rights risks in their supply chain. Furthermore, in October 2023, Cisco was honored as a leader in the Global Child Forum’s annual benchmark report, acknowledging our concrete actions to embed children’s rights into our company practice.

Embedding Corporate Due Diligence Into our Business Operations

As we strive to securely connect and protect people and businesses, and support workers in our supply chain, we take a mindful and systematic approach. We design and build solutions with security, privacy, sustainability and human rights in mind. This approach empowers our partners, customers, and their users to leverage the potential of connected technologies to improve their lives and fulfill their business objectives.

Our diligence extends throughout our products’ lifecycle, from mineral sourcing to product design, manufacturing, reuse, and end-of-life.

As a founding member of the Responsible Business Alliance (RBA), we engage in the prevention and remediation of adverse human rights impacts in our supply chain. We assess potential impacts on stakeholders, including vulnerable workers in our supply chain and end users of our products and solutions.

Aligning global corporate standards and public policy

The CSDDD will require companies to conduct human rights and environmental due diligence within their internal operations and supply chains. This due diligence will enable companies to identify, prevent, mitigate and address potential adverse impacts of their operations. The significance of the CSDDD lies in its recognition of the vital role businesses play in shaping an equitable future, providing a consistent regulatory framework for this responsibility and creating a level playing field across the EU’s 27 markets. With the CSDDD, the EU is set to serve as a global standard for responsible business conduct.

Businesses have a critical role to play, alongside civil society and governments, in addressing risks in supply chains, responding to new challenges, and navigating a shifting geopolitical landscape. If adopted next month by the European Parliament, the CSDDD would be a significant milestone in our journey towards a more sustainable and equitable corporate world, and we look forward to the positive changes it can bring to the global community.

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