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CSDDD & EUFLR: What Audits Can Do—and What They Can’t

Webinar recording


Benefits and Limitations of Audits in the Context of Human Rights Due Diligence (CSDDD and EUFLR)

For many companies, social audits are an established tool in supply chain management. However, as requirements for human rights due diligence increase, a central question comes into focus:“
” What concrete contribution can social audits—and Sedex SMETA in particular—actually make—and how can they be meaningfully integrated into effective processes?

Companies are increasingly faced with the challenge of not only formally identifying risks but also gaining reliable insights for management and improvement. At the same time, practical experience shows that the added value of social audits depends heavily on how they are designed, conducted, and utilized.

In this webinar recording, DQS and Sedex explore how social audits can be effectively utilized in the context of human rights due diligence—with the goal of strengthening their significance and maximizing their practical benefits.

Contents

  • Which regulatory expectations can be supported by SMETA audits—and which clearly go beyond their scope
  • How audit findings can be used as evidence in the context of CSDDD and EUFLR compliance (and where their limitations lie)
  • The evolving role of corrective actions, supplier engagement, and grievance mechanisms
  • Why companies may need to rethink how audits are commissioned, interpreted, and tracked
  • The significance of the principle of proportionality and SME-related restrictions in the practice of due diligence and auditing
  • What requirements audit systems and standards should meet to remain fit for purpose in the context of the CSDDD (Corporate Sustainability Due Diligence Directive)

Background

Regulatory developments such as the CSDDD, the EU Forced Labor Regulation (EUFLR), and national supply chain laws are increasing the demands on companies to systematically identify and address human rights risks in their supply chains.

Social audits play a central role in this regard for many organizations. At the same time, it has become clear that their effectiveness depends heavily on the context in which they are used: methodology, audit design, integration into management processes, and the handling of results are decisive factors in determining the actual contribution they can make.

Against this backdrop, the question of how existing audit approaches can be further developed and strategically applied to meet these increasing requirements is gaining importance.

For companies, this means in concrete terms:

Companies are called upon to critically reflect on their existing risk analysis and management tools and to develop them further in a targeted manner.

For the use of social audits, this means in particular:

  • Audits should not be viewed in isolation, but rather embedded in overarching due diligence processes
  • realistically assess their significance and strengthen them in a targeted manner
  • Systematically translate findings from audits into improvement measures
  • Continuously adapting audit strategies to the risk situation and corporate context

A conscious and strategic approach to social audits can help significantly increase their effectiveness and ensure resources are used more effectively.

Target Audience

The webinar is aimed at specialists and managers in the following areas:

  • Sustainability / ESG
  • Procurement and Supply Chain Management
  • Compliance / Human Rights

as well as anyone who uses social audits or wishes to better understand and further develop their role in the context of human rights due diligence.

Dr. Thijs Willaert is product manager for sustainability at DQS CFS GmbH.

Speaker

Dr. Thijs Willaert is Global Director of Sustainability Services at DQS.

In this role, he is responsible for DQS’s entire ESG-related service portfolio. His key areas of interest include sustainable procurement, human rights due diligence, and ESG audits. As a member of various standardization committees, he helps shape the future of sustainability auditing in a rapidly changing environment.

Thomas Gerad-Biard is an external consultant for DQS CFS GmbH on the SEDEX standards

Speaker

Thomas Gèrad-Biard is an ESG expert at Sedex and supports companies on their journey toward resilient, sustainable, and data-driven supply chains. 

He gained industry experience at companies including Faurecia, Schaeffler, and Plastic Omnium in the areas of procurement, sales/program management, and supply chain management. His focus areas include the use of audit and supplier data, ESG risk assessment, and the continuous improvement of supply chains.