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ESG due diligence & risk management

From paper to practice: due diligence that really works

The CSDDD and CSRD require organizations to identify and address ESG risks in their value chain. But due diligence is more than completing checklists. It is about real change: preventing wrongdoing, supporting suppliers and making an impact on people and the environment.

Empact helps you implement due diligence practically. We make sure it does not remain a paper exercise, but becomes an integral part of your business operations.

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Our approach

Practical and hands-on: We tackle implementation with you. No theoretical reports, but concrete implementation in your daily processes.

Customization: Every organization is different. We adapt our approach to your sector, chains and challenges. Whether you’re in the food industry or finance, we make it work for your situation.

Focus on real change: The biggest risk is that due diligence becomes a paper tiger. That’s why we start small and concrete. We help you choose one key risk and solve it first. Achieve successes, learn from them, then scale up.

Assurance: Our goal is to make ourselves redundant. We train your team, share knowledge and build capacity so that due diligence stays alive after we leave.

Integration: We link due diligence to your CSRD reporting and broader ESG and sustainability goals. Due diligence does not stand alone; it strengthens your entire ESG approach.

What integrating due diligence will get you

A well-designed due diligence process delivers:

  • Risk reduction: avoid fines, liability and operational disruptions
  • Reputation enhancement: transparency creates trust with stakeholders
  • Access to capital: financiers increasingly demanding evidence of thorough due diligence
  • Resilient supply chain: better insight prevents disruptions
  • Real impact: fewer abuses, better working conditions, less environmental impact

For whom.

CSDDD mandatory organizations: Large companies that must comply with new European supply chain legislation from 2027.

CSRD reporting organizations: Companies that need to report on due diligence and want to professionalize their process.

Suppliers and SMEs: Even if you are not directly covered by CSDDD or CSRD, you will face requirements from large buyers. For smaller organizations, the VSME standard can be an accessible way to get started with sustainability reporting and due diligence tailored to SMEs.

Ambitious organizations: Companies that want to proactively manage ESG risks and make real impact, regardless of whether legislation already applies.

The six steps of due diligence

We follow the internationally recognized OECD guidelines and UN Guiding Principles, but make the process concrete and workable for your organization:

Together we develop a clear CSR policy and due diligence process. Important here: we immediately place responsibilities at the right level in your organization. Who is ultimately responsible? What role does the management play? How is supervision organized? We answer these governance questions at the beginning, so that the policy actually lives. Then we integrate it directly into contracts, purchasing and supplier relations.

We map ESG risks through your entire value chain: from extraction of raw materials to end-of-life. We look at human rights, labor rights, environmental and governance risks.

Practical tip: We help you not do everything at once. Together, we pick one key risk and address that first. For example, combating child labor or limiting toxic substances in the supply chain. Focus yields more results than fanning out broadly.

We develop concrete measures to address risks. Sometimes this means supporting suppliers, sometimes adjusting processes, and sometimes terminating relationships. We help you make the right choice and implement the measures effectively in your organization.

We set up systems for continuous monitoring. We conduct periodic reviews and audits, engage stakeholders, and learn from what works and what doesn’t. Due diligence is an ongoing process, not a one-time project.

Empact can help you determine the compliance frameworks relevant to your organization and, if desired, assist you in preparing reports and developing and implementing a successful ESG strategy. That way we can really help you move forward.

ESG standards

Specifically, when it comes to ESG compliance, we are talking about becoming compliant with the following three forms of ESG standards:

  • European and national ESG laws. Consider the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD);
  • Voluntary (reporting) frameworks. An increasing number of past voluntary frameworks have been implemented in binding legislation. For example, the OECD guidelines have become part of the CSDD and the CSRD. However, these laws do not (yet) apply to all organizations. Empact can help you implement voluntary ESG frameworks in business operations. These include the OECD guidelines, UN Sustainable Development Goals (SDG), UN Global Compact, GRI and SASB.
  • ESG ratings and scoring systems. In addition to compliance with international standards for ESG, it is logical that companies want to demonstrate to stakeholders such as customers and investors how well they are performing on ESG. Empact can help determine the most appropriate system and the (data) questions that arise from that to achieve compliance. Of course with the intention to make real impact, we do not do greenwashing. Standards to consider include Sustainalytics, Eco vadis, CO2 performance ladder, MSCI, S&P Global scores, EPD (Environmental Product Declaration), EIA (Environmental Impact Assessment) and B-Corp.

Considerations

Each of these different standards has its own advantages and disadvantages. It depends on the context which ESG legislation, guidelines or standards make sense for your organization. Some of the things we include in that consideration are:

  • Do you fall within the scope of (European) legislation because of the number of employees or the size of the turnover?
  • Does your organization supply companies that fall within the scope of European legislation, requiring you to provide certain information?
  • Are you operating in a high-risk sector or country?
  • What is your organization’s maturity on ESG?
  • What is your organization’s ESG ambition level?

We support you in reporting in accordance with the CSRD and communication to stakeholders. Transparency strengthens your reputation and shows that you take responsibility.

We help you set up accessible grievance mechanisms for employees and external parties. We develop remedial measures proportional to the severity of negative impacts. Affected parties are heard and effective action follows.

Start now

The CSDDD will take effect in phases beginning in 2027. Organizations that start now will be ahead of the curve and better prepared. Want to know how Empact can help you with due diligence that really works? Get in touch.

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