Emerging Global Regulatory Frameworks on Corporate Environmental Due Diligence: Implications for Forest Protection in India

Corporate Environmental Due Diligence (CEDD), Forest Protection , EU Deforestation Regulation (EUDR), Sustainable Supply Chains, Environmental Governance in India

Corporate Environmental Due Diligence (CEDD) has emerged as a central component of global sustainability governance, reflecting a transition from voluntary corporate social responsibility initiatives to legally binding obligations on businesses to identify, prevent, mitigate, and account for environmental harms across their value chains. Recent regulatory developments, particularly within the European Union (EU), Organisation for Economic Co-operation and Development (OECD), and United Nations (UN) frameworks, have significantly expanded corporate responsibilities concerning environmental protection, biodiversity conservation, and deforestation-free supply chains. The EU Corporate Sustainability Due Diligence Directive (CSDDD) and the EU Deforestation Regulation (EUDR) represent landmark efforts to impose mandatory environmental due diligence requirements on companies operating in global markets, compelling them to address adverse environmental impacts throughout their supply chains. These emerging frameworks have profound implications for developing countries such as India, whose forestry resources, agricultural commodities, and export-oriented industries are increasingly integrated into global value chains. India faces the dual challenge of promoting economic development while conserving forest ecosystems that support biodiversity, climate regulation, and the livelihoods of millions of forest-dependent communities. The growing emphasis on traceability, sustainability reporting, and deforestation-free sourcing creates both opportunities and challenges for Indian businesses and policymakers. While enhanced due diligence standards may strengthen environmental governance and improve market access for sustainable products, compliance costs, technological requirements, and institutional capacity constraints remain significant concerns. This article critically examines the evolution of global environmental due diligence frameworks, analyzes their legal and policy dimensions, and evaluates their implications for forest protection in India. It argues that emerging due diligence regulations can serve as catalysts for strengthening forest governance, promoting sustainable supply chains, and enhancing corporate accountability. However, their effectiveness depends upon coherent domestic legal reforms, robust enforcement mechanisms, technological innovations in traceability systems, and inclusive stakeholder participation. The article concludes that India must proactively adapt its environmental governance framework to align with global due diligence standards while safeguarding developmental priorities and forest-dependent communities.