CSDDD vs CSRD vs SFDR: Which One Affects You?

একজন সোর্সিং মার্চেন্ডাইজার সকালে অফিসে এসে দেখেন, ইমেইলে ইউরোপীয় ব্র্যান্ডের একটি নতুন Sustainability Requirement Sheet এসেছে।

তাঁর চোখে পড়ে:

• CSDDD Policy

• CSRD Data Requirements

• SFDR Reporting Alignment

তিনি ধাক্কা খেয়ে বলেন:

“আরে! এতগুলো শর্টফর্ম—CSDDD, CSRD, SFDR—একটা আরেকটার মতোই তো মনে হচ্ছে! আসলে এদের মধ্যে পার্থক্যটা কী?”

That’s the exact confusion we clear up in Episode 3 of the series.

🤖 Bonus Resource: AI Compliance Chatbot

Still confused? Try my free AI-powered Compliance Assistant trained on CSDDD, CSRD, and factory-facing requirements.

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🎬 Watch Episode 3 →

🧭 Why These Acronyms Matter (Even in Bangladesh)

As EU sustainability regulations tighten, factory compliance teams, merchandisers, and ESG professionals are increasingly being asked to:

• Share environmental data

• Provide grievance mechanism summaries

• Align with “due diligence” policies

But which regulation asks for what?

Here’s the breakdown:

⚖️ CSDDD = What companies must DO

Corporate Sustainability Due Diligence Directive

• Focuses on action: risk identification, prevention, and remediation

• Applies to both EU and non-EU companies with €450M+ EU turnover

• Directly affects factories in Bangladesh through buyer requirements

Example:

A Bangladeshi RMG factory supplying to H&M must ensure it can show how it prevents child labor, handles worker complaints, and manages environmental risks.

🧾 CSRD = What companies must REPORT

Corporate Sustainability Reporting Directive

• Requires brands to publicly disclose their ESG performance

• Factories will be asked for verified data: emissions, waste, wages, audit outcomes

• Often connected with platforms like Higg FEM, SLCP, GRI, or GHG inventories

Example:

Your buyer may request your GHG calculation or wastewater test result—not just for internal records, but for public EU disclosures.

💸 SFDR = What investors must DISCLOSE

Sustainable Finance Disclosure Regulation

• Applies to EU financial institutions and investors

• Doesn’t directly affect factories, but trickles down

• Brands with investor backing may impose stricter ESG requirements across their supply chains

Example:

A European brand under pressure from climate-conscious investors may tighten its chemical safety or carbon tracking policies—even if your factory is in Savar or Narayanganj.

🎯 Key Takeaway:

If you’re a factory manager, compliance officer, or ESG practitioner, the regulation that affects you most is CSDDD.
But expect CSRD and SFDR to shape what buyers demand from you in terms of documentation and transparency.

👀 Coming up next:

In Episode 4, we’ll explore how to identify risks inside your factory—from overwork to unsafe chemicals to hidden subcontractors.

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💬 Share this post with your sourcing or compliance team—it’s time to align before buyers demand it.