On November 19, 2024, the webinar titled "Corporate Sustainable Development: How Chinese Enterprises in Europe Can Navigate CSDDD & FLR Compliance", co-organized by the China Chamber of Commerce to the EU (CCCEU) and the global law firm Gunnercooke LLP, concluded successfully. The virtual event brought together representatives from over 100 Chinese enterprises and organizations, highlighting the growing interest and need for insights on navigating these critical regulatory frameworks.

The webinar commenced with opening remarks from CCCEU Secretary General Mang Dongkui, who underscored the significance of the Corporate Sustainability Due Diligence Directive (CSDDD) and Foreign Labour Reporting (FLR) as pivotal EU initiatives aimed at enhancing sustainability across global supply chains. He highlighted the profound implications of these regulations for corporate compliance and long-term competitiveness, emphasizing their impact on every aspect of supply chain management—from product design and raw material sourcing to production and distribution.  

Mr. Fang stated, "Compliance is not only a regulatory obligation but also a strategic choice to drive sustainable corporate growth. Chinese businesses adapting to these regulations can view them as opportunities to establish more resilient and sustainable supply chains." He also expressed heartfelt gratitude to Gunnercooke LLP for their support in organizing the webinar and conveyed his hope that the event would equip participants with a clear understanding of the core elements and strategies needed for compliance.  

In the first session, Dr. Eike W. Grunert, Partner at Gunnercooke, provided an overview of the CSDDD, covering its background, framework, and corporate obligations. He explained the directive's requirement for companies to conduct due diligence across their supply chains, identify risks, and implement mitigation measures, while also highlighting its alignment with the German Supply Chain Act (SCA). 

Dr. Grunert recommended a phased approach to compliance, starting with high-risk areas and expanding efforts, while emphasizing the value of leveraging resources and tools to streamline the process and meet regulatory expectations.

In the second session, Mr. Felix Thiede, Partner at Gunnercooke, provided an in-depth overview of compliance with the FLR, focusing on its enforcement mechanisms and its significant impact on supply chain management. He emphasized that the regulation applies to all products entering the EU, regardless of the company's size or location. 

To ensure compliance, Mr. Thiede advised enterprises to implement comprehensive due diligence processes, including rigorous auditing and continuous monitoring of every stage of the supply chain.

During a lively Q&A session, critical issues were addressed, including the scope of the CSDDD, the urgency of preparation, the differences between the CSRD and CSDDD, and practical suggestions for Chinese companies to comply with both the CSDDD and FLR.  

The webinar, moderated by Liang Linlin, the CCCEU Director of Communication and Research, offered participants valuable insights into the EU's two new sustainability regulations, along with practical guidance on compliance strategies. The CCCEU reaffirmed its commitment to supporting Chinese enterprises in navigating these complex regulations and achieving sustainable development in the EU, offering continued policy interpretation and resource assistance.