What is supply chain due diligence under Dutch and EU law?

Dutch term: Ketenonderzoek / supply chain due diligence | Legal basis: CSDDD + EUDR + CSRD

Supply chain due diligence under Dutch and EU law is the systematic process by which companies identify, prevent, mitigate and account for adverse human rights and environmental impacts in their own operations and in their value chains. The legal framework is rapidly evolving, with three main instruments: the CSDDD (Corporate Sustainability Due Diligence Directive, requiring due diligence on human rights and environment), the EUDR (EU Deforestation Regulation, requiring deforestation-free sourcing for specific commodities), and the CSRD (Corporate Sustainability Reporting Directive, requiring reporting on sustainability impacts including supply chain risks).

The due diligence obligations flow through the supply chain contractually: companies subject to the directives must embed due diligence requirements in their supply agreements, including information-sharing obligations, audit rights, corrective action plans, and termination rights for persistent non-compliance. This creates a contractual cascade: even companies not directly subject to the regulations will face due diligence requirements from their customers and principals.

Why it matters for international businesses

For international businesses in the manufacturing supply chain, supply chain due diligence is becoming a mandatory part of doing business in the EU. MAAK Advocaten advises on the regulatory obligations and drafts the contractual provisions that translate due diligence requirements into workable supply chain arrangements.