Assessing the Financial, Operational, and Governance Impacts of CSRD, CSDDD, and the EU Taxonomy: Integration of Sustainability in Supply Chains: Corporate Adaptation to the EU Omnibus Sustainability Regulation

Details

Supervisors

Desmet, Carlos

Faculty

Louvain School of Management

Degree label

Master [120] en sciences de gestion, à finalité spécialisée

Abstract

enThis thesis explores how European companies integrate sustainability into their supply chains in response to the European Union’s evolving regulatory framework, namely, the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD), and the EU Taxonomy Regulation. These three instruments, increasingly converging under the proposed Omnibus Sustainability Regulation, establish binding obligations for environmental, social, and governance (ESG) performance and supply chain transparency. By combining theoretical frameworks, regulatory analysis, and real-world case studies, this research assesses the financial, operational, and strategic implications of compliance for corporations operating across global value chains. The study incorporates a comparative review of national legislative precedents, evaluates industry responses to the shifting compliance landscape, and identifies the core benefits and challenges of implementing due diligence obligations. A dedicated case study on the Volkswagen Group illustrates the depth of transformation required to meet these directives. The findings reveal that while compliance imposes significant short-term costs and organizational restructuring, it also opens opportunities for risk mitigation, competitive differentiation, and ESG leadership. The thesis concludes with strategic recommendations for businesses and policymakers to enhance regulatory alignment, foster resilient supply chains, and support an inclusive transition toward sustainable corporate governance in Europe.