Caution, third-party verification and multi-stakeholder initiatives ahead!

Ben Vanpeperstraete

Chapter 45 in Sustainable Business in Europe, 2026, pp 626-638 from Edward Elgar Publishing

Abstract: This commentary examines the role of third-party verification, certification, and multi-stakeholder initiatives (MSIs) within the framework of the EU Corporate Sustainability Due Diligence Directive (CSDDD). While the Directive does not mandate the use of these bodies, it raises questions regarding the effectiveness, reliability, and accountability of private governance mechanisms in operationalising human rights and environmental due diligence. Industry initiatives, MSIs, and third-party audits are often deployed by companies to manage supply chain risks, yet they face persistent critiques concerning limited oversight, transparency, and substantive standards. Evidence suggests that these instruments frequently fail to identify or address salient human rights risks, particularly those requiring sustained engagement with affected stakeholders. The Directive acknowledges the supportive role such mechanisms may play, but it refrains from granting them safe harbour status and instead maintains the corporate obligation for due diligence performance. Instead, it requires companies to assess the appropriateness and credibility of these schemes, while mandating the European Commission to develop guidelines on fitness criteria. The chapter concludes that although the CSDDD thus incorporates some of the critiques, unresolved concerns remain regarding conflicts of interest, accountability gaps, and the risk of de facto reliance on weak verification mechanisms which may be dealt with in administrative oversight.

Keywords: Corporate Sustainability Due Diligence Directive (CSDDD); Third-Party Verification; Certification; Multi-Stakeholder Initiatives (MSIs); Industry Initiatives; Human Rights Due Diligence; European Union Law (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035326891
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