The European Union has adopted the Corporate Sustainability Due Diligence Directive (CSDDD) with the aim of requiring companies operating on the European market to take greater responsibility for the environmental and human rights impacts of their activities. Although the directive formally applies to large companies within the European Union, its impact extends significantly to suppliers outside the EU, including companies from Bosnia and Herzegovina participating in international supply chains.
The directive introduces an obligation for large companies to identify, assess, and manage risks related to environmental and human rights impacts across their operations and their relationships with suppliers. This includes issues such as working conditions and employee safety, the origin of raw materials, production methods, waste and emissions management, as well as potential negative impacts on local communities. European companies must demonstrate that they have systems in place to recognize such risks and that they take measures to prevent or mitigate them.
As a result, part of these requirements is transferred to suppliers. Companies from Bosnia and Herzegovina that export to the European Union or participate in international supply chains increasingly receive requests related to the management of environmental and social issues. Buyers may request information on working conditions and occupational safety, waste and emissions management, the origin of key raw materials, or basic company policies related to environmental protection and responsible business conduct. Such information is becoming part of supplier assessments and long-term evaluations of business reliability.
For micro, small and medium-sized enterprises in Bosnia and Herzegovina, it is important to understand that these requirements do not automatically imply complex reporting systems. In many cases, the focus is on organizing basic internal procedures and records that allow companies to have a clear overview of their own processes. This includes maintaining records of suppliers and the origin of materials, collecting data on energy consumption and waste generation, and clearly defining responsibilities within the company for sustainability and risk management. Companies that have such a foundation can respond more easily to partner inquiries and pass supplier assessments more efficiently.
For many companies in Bosnia and Herzegovina, a key challenge is the lack of time and technical capacity to monitor new European regulations and translate them into practical internal processes. For this reason, access to expert support that helps companies understand expectations and organize the basic elements of responsible business practices is particularly important. One such support mechanism is the Responsible Business Hub Bosnia and Herzegovina (RBH BiH), which operates within the Foreign Trade Chamber of Bosnia and Herzegovina with the support of the European Union and the German Federal Ministry for Economic Cooperation and Development (BMZ) through the EU Private Sector Development initiative.
The Responsible Business Hub BiH connects companies with a network of experts providing support in areas such as sustainable supply chains, ESG standards, emissions management, and responsible business practices. Through advisory activities and expert guidance, companies can receive assistance in understanding the requirements of the European market and in introducing basic procedures that enable more transparent and reliable business operations. More information on available resources and support opportunities can be found on the Responsible Business Hub BiH website: https://zelenaekonomija-rbhbih.komorabih.ba.
The due diligence directive in supply chains is part of a broader shift in how the European market views corporate operations. Sustainable resource management, transparency, and responsibility toward employees and the environment are increasingly becoming standard elements of business relationships. For export-oriented companies from Bosnia and Herzegovina, this means that the ability to manage data, processes, and risks within supply chains will play an increasingly important role in maintaining and developing cooperation with partners on the European Union market.
