The World Benchmarking Alliance's 2024 Social Benchmark which examines whether the world’s 2,000 most influential companies are fulfilling societal expectations to foster a more equal and inclusive world has been presented in July 2024..
What does WBA’s Social Benchmark tell us about the current state of corporate preparedness for CSDDD?
This assessment has been done by reviewing the findings of the Social Benchmark through the lens of the impending CSDDD legislation and providing snap shots on the current state of preparedness for companies to implement mandatory supply chain due diligence. In doing this we can see the key gaps that companies and governments need to focus on to ensure meaningful implementation by 2027.
In summary, we can see that:
80% of companies assessed scored ZERO on the steps of HRDD implementation.
Only 9% of companies demonstrate any evidence that they engage with affected or potentially affected stakeholders.
While majority of companies have a grievance mechanism, only minority of companies ensure rightsholder involvement in the mechanism’s design.
On average, 87% of the financial sector has demonstrated ZERO evidence of implementing HRDD measures.
With 3 years until the first wave of implementation of CSDDD, these results show that there is an urgent need for significant upskilling and investment by companies to ensure they are meaningfully implementing CSDDD. Coupled with this, both the European Commission & EU member states need to prioritise the provision of CSDDD guidance and supporting measures to ensure that companies have all the tools they need to adhere to CSDDD.
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