Dejan Jasnic · Co-founder & Compliance Lead, Trusty · 20+ years anti-fraud & compliance · ACFE Swiss Chapter Board
Business sustainability is a growing priority on the European Union (EU) agenda, and with the Corporate Sustainability Due Diligence Directive (Directive (EU) 2024/1760 or CSDDD), the need for companies to operate responsibly and transparently through responsible business practices is strengthened.
One of the key aspects of this directive is the CSDDD information channel: an effective channel through which to report possible non-compliances and risks in the areas of human rights and environmental issues. Screening tools such as QuickScreen360 help companies identify those risks among their suppliers.
In this article, we explore the requirements of this information channel, its importance, and how companies can comply with these new obligations.
Trusty provides a compliant whistleblowing system for companies with 50 or more employees, live in minutes.
General characteristics of the CSDDD information channel
The CSDDD information channel has become an essential tool for corporate transparency and accountability. A well-designed channel not only complies with legal requirements, but also strengthens the trust of employees, customers, and other stakeholders of the organization.
An effective information channel enables companies to identify problems before they escalate, reduce legal and reputational risks, and demonstrate a genuine commitment to sustainability and human rights.
The general characteristics of these channels are as follows:
- It is mandatory to implement a whistleblower channel for all companies with 50 or more employees, as well as for any public entity or body.
- This channel can be established digitally, by telephone, mail or any other similar means of communication.
- The deadlines established for responding to and processing internal complaints must be respected. For more details on these deadlines, please refer to our article on the
Transposition of the Whistleblowing Directive in Spain. - It is essential to guarantee the confidentiality of the whistleblower, regardless of the method of communication used.
- The channel must comply with the regulations of the General Data Protection Regulation (GDPR).
- It is necessary to appoint a person or committee to manage and supervise internal complaints, assuming responsibility for the complaints channel. This person should be adequately trained in legal matters, in the organization’s internal codes and in the protection of personal data.
- Companies have the option of outsourcing the whistleblowing channel, contracting this service to a company specialized in whistleblowing, such as Trusty.
Key requirements of the information channel under the CSDDD
The directive establishes several requirements that companies must meet to ensure that their CSDDD information channel is effective and aligned with sustainability objectives.
Here are the most important aspects:
- Accessibility. The information channel must be accessible to all stakeholders (employees, suppliers, etc.).
- Protocol of use. It is necessary to develop regulations or protocols that explain what situations can be reported through the channel, how to do so, and what to expect from the process. Information should also be provided about what cannot be communicated through this channel and the consequences of making false reports.
- Confidentiality and anonymity of the informant. Mechanisms to ensure that the information provided is handled with discretion to avoid retaliation against the informant.
- Independence and neutrality. It is essential that the information channel be managed independently, preferably by an external entity or a specialized department within the company, to ensure its impartiality.
- Written and verbal reports. The whistleblowing channel must allow reports to be submitted both in writing and verbally. To do this, a dedicated email address or a voicemail box can be set up, or software that integrates these functions can be used.
- Registration and acknowledgement of receipt. Complainants must always be informed that their complaint has been received and registered, complying with the 7-day deadline for doing so. The person in charge must send the acknowledgement of receipt and refer to the Public Prosecutor’s Office those complaints in which there are indications or certainty that a crime defined in the Penal Code has been committed.
- Procedure for the deletion of personal data. It is necessary to establish a protocol for the elimination of complaints and the deletion of personal data in accordance with data protection regulations.
- Periodic review. The whistleblowing channel, together with its protocols and procedures, must undergo periodic reviews to evaluate its effectiveness, identify possible problems and correct them. These reviews can be internal, although external audits provide greater independence and objectivity.
- Penalties. The organization must create a disciplinary system linked to the whistleblower channel to sanction unlawful conduct or violations of internal regulations, always within the limits allowed by labor legislation.
In short, the Corporate Sustainability Due Diligence Directive represents a significant step towards creating a more responsible and transparent business environment. The establishment of an effective reporting channel is one of the key elements of this regulation, and its proper implementation can make a difference in the ability of companies to manage risks and meet their sustainability commitments.
Companies that take a proactive approach and align their reporting channels with the requirements of the directive will not only meet their legal obligations, but will also strengthen their reputation and build stronger relationships with their stakeholders. Sustainability is not just a trend, it is a necessity, and the right tools can make this transition successful and beneficial for all.
Related reading: Whistleblower Hotline Requirements by US State and What is a Whistleblower?
Frequently asked questions
The Corporate Sustainability Due Diligence Directive, Directive (EU) 2024/1760. It strengthens the obligation for companies to operate responsibly and transparently, and one of its key elements is an information channel through which risks and non-compliance in human rights and environmental matters can be reported.
All stakeholders, not only employees. The channel must be accessible to suppliers and other stakeholders, allow written and verbal reports, and be managed independently, preferably by an external entity or a specialized department, to guarantee impartiality.
Confidentiality and anonymity of the informant to prevent retaliation, compliance with the GDPR, registration and acknowledgement of receipt within 7 days, a protocol explaining what can and cannot be reported, a procedure for deleting personal data, periodic reviews of effectiveness, and a disciplinary system within the limits of labor legislation.
Yes. Companies may contract the whistleblowing channel to a specialized provider such as Trusty. Whoever manages it must be trained in legal matters, the organization's internal codes and personal data protection, and reports with indications of a crime must be referred to the Public Prosecutor's Office.
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