Comprehensive Due Diligence Services by GRAS
In today’s global landscape, companies face increasing obligations to manage and mitigate risks related to human rights, environmental impacts, and regulatory compliance. GRAS offers tailored due diligence services designed to support businesses effectively address these challenges. From risk assessment to compliance with German and upcoming EU regulations.
Facilitating corporate due diligence with global solutions
Companies are increasingly responsible for ensuring ethical and sustainable practices in their supply chains regarding their environmental, social and governance impact.
Regulations such as the German Supply Chain Due Diligence Act (LkSG), the Corporate Sustainability Due Diligence Directive (CSDDD) and the EU Regulation on Deforestation-Free Products (EUDR) impose strict requirements on companies to monitor, manage and mitigate risks related to human rights violations, environmental impacts and deforestation. At GRAS, we offer comprehensive due diligence services tailored to support companies meet these complex obligations and build a more responsible, transparent supply chain.
GRAS Due Diligence Services
Conducting Risk Assessments
GRAS offers advanced risk assessments to identify and evaluate potential risks across agricultural supply chains. Our analysis includes human rights, environmental, and governmental risk factors, allowing companies to proactively address areas of concern and implement mitigation measures. This includes abstract risk analyses that assess impacts on vulnerable communities, such as indigenous populations, and on key environmental resources.
EU Regulation on deforestation free products (EUDR)
GRAS provides expert guidance for companies, traders, and cooperatives navigating EUDR compliance. With a strong background in remote sensing and risk analysis, we offer a range of services, including consulting, deforestation assessments, and access to our advanced EUDRx platform. Further information on EUDR services can be assessed here.
Implementation of Grievance Mechanism
A grievance mechanism is essential for identifying and addressing supply chain issues effectively. GRAS assists companies in setting up and managing grievance mechanisms, enabling stakeholders to report violations safely and confidentially. This process fosters transparency and accountability, allowing companies to address potential concerns swiftly and responsibly.
Regulatory Compliance Support
Keeping pace with evolving regulatory demands can be challenging. GRAS supports companies in navigating compliance with German and EU regulations:
German Supply Chain Due Diligence Act (LkSG)
GRAS supports businesses in conducting a comprehensive country
and sector specific abstract risk analysis which includes an evaluation
per criterion listed in the LkSG and applies a mixed-methods approach
on human rights and environmental risks. The holistic approach utilizes
both quantitative and qualitative findings and provides a solid foundation
for companies’ LkSG reporting.
Corporate Sustainability Due Diligence Directive (CSDDD)
GRAS collaborates with Meo Carbon Solutions, leveraging extensive consulting expertise in sustainability, to align GRAS risk assessment approaches with forthcoming Corporate Sustainability Due Diligence Directive (CSDDD) requirements. This partnership enables us to offer comprehensive support for implementing German and EU supply chain due diligence obligations.
Further Information
What is the Supply Chain Due Diligence Act (LkSG)?
The new law, which was adopted in June 2021 and takes effect on January 1, 2023, intends to hold companies responsible for ensuring adherence to social and environmental standards in their global supply chains.
To whom does the Supply Chain Act apply?
The law initially applies to companies with at least 3,000 employees starting in January 2023, and from 2024 to companies with at least 1,000 employees in Germany.
Which human rights does the Supply Chain Act strengthen?
The law strengthens human rights and environmental protection. That includes:
- protection against environmental violations
- protection against child labour, forced labour, and discrimination
- protection against land grabbing
- occupational health and safety
- the right to fair wages
- the right to form unions
What is the Corporate Sustainability Due Diligence Directive (CSDDD)?
According to the proposed directive, companies coming under the scope of application will in future have to identify human rights and the environment risks in their entire chain of activity, take preventive and remedial action and report on the situation. Companies must look at their upstream supply chains (e.g. raw material mining) and at their downstream supply chains (e.g. disposal) in an appropriate manner.
What is the aim of the Corporate Sustainability Due Diligence Directive (CSDDD)?
The aim is that companies operating in the EU implement certain due diligence obligations in order to prevent that their business activities have negative implications on human rights and the environment in their chains of activity within and outside Europe.
What is the scope of CSDDD?
The directive covers three groups of companies:
- Companies from a third country if their annual net turnover is a) more than 150 million euros in the EU or b) 40 to 150 million euros in the EU and at least 20 million euros of their worldwide turnover is earned in a risk sector.
- Companies with at least 500 workers and a global annual net turnover of 150 million euros.
- Companies with at least 250 workers and a global annual minimum global turnover of 40 million euros provided that at least 20 millioneuros worth of their turnover is achieved in a risk sector. Risk sectors include the textile industry, agriculture and forestry, fishing, food, chemistry, exploitation of mineral resources (e.g. crude oil, natural gas, coal, metals and ores).
What is the EU Regulation on Deforestation-Free Products (EUDR)?
The European Union Regulation on Deforestation-Free Products (EUDR) is the Regulation (EU) 2023/1115 of the European Parliament and of the Council of 31 May 2023 on the making available on the Union market and the export from the Union of certain commodities and products associated with deforestation and forest degradation and repealing Regulation (EU) No 995/2010 adopted by the European Union. The regulation text is available here and official guidance on the implementation is provided in the FAQ document.
Who is obliged to comply with the EUDR?
The regulation applies to operators and traders who import, export or trade EUDR-relevant commodities and their derivatives within the EU. All participants and traders within the EU value chain are responsible for compliance with the EUDR. Specific provisions have been outlined for small and medium-sized enterprises.
Which commodities and products are covered by the EUDR?
The EUDR sets mandatory due diligence rules for operators placing specific commodities or products on the EU market or exporting them from the EU. The commodities initially included are soy, cattle, palm oil, wood, cocoa, coffee, and rubber, as well as derived products as specified in Annex I of the regulation.