Key Compliance Requirements for EU Regulatory Changes in 2024 and Beyond

Key Compliance Requirements for EU Regulatory Changes in 2024 and Beyond

According to an article by Navex, the European Union (EU) is actively reshaping its regulatory landscape. These EU regulatory changes underscore the importance of compliance for companies, which is crucial for businesses operating within or interacting with the EU market.

Some of the EU regulatory changes highlighted in the article include:

1. Corporate Sustainability Reporting Directive (CSRD): This directive mandates stricter sustainability reporting, requiring detailed, standardized information on environmental, social, and governance (ESG) impacts. It applies to large companies, listed SMBs, and significant non-EU companies operating in the EU.
2. Corporate Sustainability Due Diligence Directive (CSDDD): Companies must now address human rights violations and environmental abuses within their supply chains. The directive demands accountability for adverse impacts, even deep within the supply chain, and requires transparency in due diligence efforts.
3. German Supply Chain Due Diligence Act (LkSG): This act enforces high standards for responsible business conduct, requiring proactive monitoring of human rights and environmental risks throughout supply chains. Companies must establish risk management systems and provide grievance mechanisms for affected parties.
4. EU Whistleblower Protection Directive: This directive protects individuals reporting misconduct by establishing secure reporting channels, ensuring proper handling of reports, and safeguarding whistleblowers from retaliation. It promotes a culture of openness.
5. EU AI Act: Aimed at balancing AI benefits with risks, this act introduces a risk-based framework requiring stricter oversight for high-risk AI systems. It emphasizes ethical AI development, transparency in decision-making, and human oversight.