At its core, due diligence means putting processes and policies in place to identify and manage (potential) negative sustainability impacts.
It is increasingly enshrined into regulations like the Corporate Sustainability Due Diligence Directive (CS3D) and the Deforestation Regulation (EUDR), but also in the Corporate Sustainability Reporting Directive (CSRD), which contains the obligation for companies to report on their due diligence efforts.
A robust due diligence system allows you to provide a comprehensive response to changing stakeholder expectations. It can also play a key role in the development of a more resilient and future-oriented business strategy.