Study on the EU supply chain law: How well prepared are companies?

While in February 2024 the ratification of the EU Supply Chain Act had failed, it has finally been adopted on March 18 – with short-term amendments and despite Germany’s abstention. There is now clarity for companies. Many European businesses, which are on the front lines of implementing the Corporate Sustainability Due Diligence Directive (CSDDD), had already started preparing for the regulations. Our latest study sheds light on how far they have come and explores the complexities and challenges encountered. 

Officially known as the Corporate Sustainability Due Diligence Directive, the groundbreaking legislation would mandate that a significant portion of European companies shoulder responsibility for social and environmental concerns throughout their entire supply chain. In 2020, all 27 member states of the EU agreed to create such regulation.

An opportunity with a cost and challenges in implementation

INVERTO’s latest analysis delves into the readiness of German and French companies to comply with the CSDDD, comparing it to the existing national regulations in Germany and France. The study, which surveyed roughly 350 participants from each country at the end of 2023, offers comprehensive insights on the journey towards more ESG compliant supply chains. The results and recommendations for action are freely available for download.

In addition to an English version, which presents the results of the study using France and Germany as examples for the EU countries concerned, there are also versions available in French and German targeting the respective markets.

Download the appropriate study results

Result presentation based on over 650 respondents from Germany and France as EU-member states representatives.

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Result presentation based on over 350 French participants across different industries (partly with comparison to German participants).


Download french version

Result presentation based on over 330 German participants across different industries (with comparison to over 350 French respondents).


Download german version

Result presentation tailored to the healthcare industry.



Key findings include:

  • Almost 80% of those surveyed believe the demands of the EU Supply Chain Act are manageable.
  • Most companies have already launched initiatives to comply with the Act.
  • Despite the majority prioritizing environmental and social improvements within their supply chains, three out of four acknowledge facing significant challenges in implementing these changes.
  • 23% view the regulation primarily as a risk, citing non-EU companies’ exemption from these obligations as a potential competitive disadvantage.
  • 52% of respondents foresee the directive leading to low additional costs, while 18% anticipate (high) additional expenses.

This legislation would represent a significant shift towards greater corporate accountability in the global marketplace, aiming to ensure that companies not only pursue profits but also contribute positively to society and the environment – in Europe and worldwide.

Who is affected (status 18 March 2024) and what are the requirements?

The directive targets European companies with over 1000 employees and a global turnover exceeding 450 million euros. Third-country companies operating in the European Union are also affected.

What must companies consider  to be compliant with the law?

Companies are required to conduct due diligence with direct suppliers across their supply chains, identifying and addressing impacts on human rights and the environment, integrating due diligence into corporate policies and management systems, establishing grievance mechanisms, and providing transparent reporting on their due diligence practices.

Discover further sustainability publications

Studies and subject papers

The European Parliament and the EU member states agreed on the EU Supply Chain Act in December 2023. Find out how well the participants are prepared for the changes.

INVERTO Magazines

The call for global climate protection measures is growing louder. With our cover story, we want to shed light on this and support companies by showing them possible approaches


Speak to our sustainability expert

Gökhan Yüzgülec

Managing Director Contact