Felbe may , Gab iel; F iesenbichle , Klaus S.; Ge schbe ge , Ma kus; Meye , Bi gi ;
Klimek, Pe e
A icle
EU Supply Chain Regula ions Be ween E iciency and
E ec i eness
In e economics
Sugges ed Ci a ion: Felbe may , Gab iel; F iesenbichle , Klaus S.; Ge schbe ge , Ma kus; Meye ,
Bi gi ; Klimek, Pe e (2025) : EU Supply Chain Regula ions Be ween E iciency and E ec i eness,
In e economics, ISSN 1613-964X, Sciendo, Wa saw, Vol. 60, Iss. 3, pp. 165-169,
h ps://doi.o g/10.2478/ie-2025-0032
This Ve sion is a ailable a :
h ps://hdl.handle.ne /10419/320239
S anda d-Nu zungsbedingungen:
Die Dokumen e au EconS o dü en zu eigenen wissenscha lichen
Zwecken und zum P i a geb auch gespeiche und kopie we den.
Sie dü en die Dokumen e nich ü ö en liche ode komme zielle
Zwecke e iel äl igen, ö en lich auss ellen, ö en lich zugänglich
machen, e eiben ode ande wei ig nu zen.
So e n die Ve asse die Dokumen e un e Open-Con en -Lizenzen
(insbesonde e CC-Lizenzen) zu Ve ügung ges ell haben soll en,
gel en abweichend on diesen Nu zungsbedingungen die in de do
genann en Lizenz gewäh en Nu zungs ech e.
Te ms o use:
Documen s in EconS o may be sa ed and copied o you pe sonal
and schola ly pu poses.
You a e no o copy documen s o public o comme cial pu poses, o
exhibi he documen s publicly, o make hem publicly a ailable on he
in e ne , o o dis ibu e o o he wise use he documen s in public.
I he documen s ha e been made a ailable unde an Open Con en
Licence (especially C ea i e Commons Licences), you may exe cise
u he usage igh s as speci ied in he indica ed licence.
h ps://c ea i ecommons.o g/licenses/by/4.0/
ZBW – Leibniz In o ma ion Cen e o Economics 165
Fo um
Gab iel Felbe may , Klaus F iesenbichle , Ma kus Ge schbe ge , Bi gi Meye and Pe e Klimek
EU Supply Chain Regula ions Be ween E iciency and E ec i eness
© The Au ho (s) 2025. Open Access: This a icle is dis ibu ed unde he
e ms o he C ea i e Commons A ibu ion 4.0 In e na ional License
(h ps://c ea i ecommons.o g/licenses/by/4.0/).
Open Access unding p o ided by ZBW – Leibniz In o ma ion Cen e
o Economics.
In e economics, 2025, 60(3), 165-169
JEL: F13, F18, J80
DOI: 10.2478/ie-2025-0032
Gab iel Felbe may , Supply Chain In elligence In-
s i u e Aus ia, Vienna; and Aus ian Ins i u e o
Economic Resea ch, Vienna, Aus ia.
Klaus F iesenbichle , Supply Chain In elligence
Ins i u e Aus ia, Vienna; and Aus ian Ins i u e o
Economic Resea ch, Vienna, Aus ia.
Ma kus Ge schbe ge , Supply Chain In elligence
Ins i u e Aus ia, Vienna; and Uni e si y o Applied
Sciences Uppe Aus ia, S ey , Aus ia.
Bi gi Meye , Supply Chain In elligence Ins i u e
Aus ia, Vienna; and Aus ian Ins i u e o Economic
Resea ch, Vienna, Aus ia.
Pe e Klimek, Supply Chain In elligence Ins i u e
Aus ia, Vienna; and Complexi y Science Hub Vi-
enna, Aus ia.
The EU Di ec i e on Co po a e Sus ainabili y Due Diligence
(CS3D) is an impo an piece o legisla ion ha equi es
bo h EU and non-EU companies o conduc en i onmen-
al and human igh s due diligence h oughou hei ope a-
ions, subsidia ies and supply ela ionships. The Di ec i e
aims o incen i ise sus ainable and esponsible co po a e
beha iou by in eg a ing human igh s and en i onmen-
al conce ns in o managemen p ac ices and go e nance
s uc u es. The a ionale behind he egula ion is ha hi d
coun ies may no implemen egula o y s anda ds p op-
e ly, despi e being bound by in e na ional law o do so. To
add ess his issue, he CS3D holds companies ope a ing
in he EU accoun able o hei supplie s’ po en ially ille-
gal ac i i ies. The scope and cos o he CS3D Di ec i e
ha e bo h been he subjec o in ense deba e. The amend-
men s con ained in he Omnibus package aim o educe
compliance cos s. The package mainly ocuses on ie -one
supplie s o he la ges companies, educes ines o non-
compliance and op s o decen alised implemen a ion.
Following Felbe may e al. (2024), ou discussion is based
on wo key equi emen s o he egula ion. Fi s ly, i mus
be able o change beha iou e ec i ely. The CS3D expec s
companies o “s ay and imp o e” upon exis ing ela ion-
ships wi h p oblema ic supplie s, a he han “cu ing and
unning”. This equi es a b oade scope o co e po en-
ially p oblema ic a eas wi hin he supply chain. Secondly,
egula ions mus be cos -e icien in o de o minimise dis-
o ions. This can be achie ed by minimising compliance
cos s, which is mo e easible when egula ions a e clea ly
de ined, and economic complexi ies a e app op ia ely ad-
d essed. Regula o s mus s ike a balance be ween hese
wo aspec s. This o ms he basis o he subsequen dis-
cussion o he di ec i e, as o iginally adop ed in 2024, and
he amendmen s o he EU Omnibus package, adop ed in
Ap il 2025 Addi ionally, his con ibu ion b ie ly discusses
he unce ain y su ounding he in e p e a ion o he egu-
la ions and conside s he p oposed due diligence p oce-
du es compa ed o mo e sys emic app oaches.
The EU CS3D and he Omnibus package
In 2022, he EU p oposed he Co po a e Sus ainabili y Due
Diligence Di ec i e (2022/0051/COD), also known as he
CS3D, which en e ed in o o ce in July 2024. The Di ec i e
aims o imp o e co po a e go e nance p ac ices, mi iga e
ad e se human igh s and en i onmen al impac s, emedy
such impac s o hose a ec ed and p omo e sus ainable
and esponsible business p ac ices h oughou he global
alue chain. Fi ms ope a ing in he EU a e equi ed o en-
su e ha hey adhe e o high e hical, en i onmen al and
labou s anda ds h oughou hei ope a ions. The CS3D
equi es companies o in eg a e due diligence in o hei pol-
icies and managemen sys ems o iden i y isks. They also
ha e o implemen isk managemen sys ems and g ie -
ance mechanisms. Companies a e equi ed o p oduce an
annual epo de ailing hei objec i es, due diligence e -
o s and he e ec i eness o hei due diligence measu es.1
The CS3D applies o all la ge companies ope a ing in he
EU. In-scope companies a e de ined as hose wi h a leas
1,000 employees and an annual wo ldwide ne u no e
o mo e han €450 million du ing a inancial yea . Non-EU
companies a e also conside ed in scope i hey gene a e
a ne u no e o a leas €450 million wi hin he EU. Com-
panies ha a e he ul ima e pa en company o a g oup, o
ha a e pa o a g oup wi h pa ies in he EU, a e also in
1 See h ps://commission.eu opa.eu/business-economy-eu o/doing-
business-eu/sus ainabili y-due-diligence- esponsible-business/
co po a e-sus ainabili y-due-diligence_en.
In e economics 2025 | 3
166
Fo um
scope. The egula ion does no a ec mic o companies o
small and medium-sized en e p ises.
The de ini ion o in-scope companies was he subjec
o leng hy deba e. While he EU Council a ou ed highe
h esholds in e ms o he numbe o employees and u n-
o e , which esul ed in ewe companies being in scope,
he EU Pa liamen a ou ed lowe h esholds, he eby in-
c easing he numbe o companies in scope. Non-compli-
ance may esul in epu a ional damage o he impo e
and/o inancial penal ies. The la e can be signi ican , as
ines o up o 2% o u no e a e subs an ial.
The amendmen s o he egula ion
On 26 Feb ua y 2025, he Eu opean Commission pub-
lished i s Omnibus package o simpli y EU egula ions
and acili a e compliance wi h sus ainabili y equi emen s
o companies. Key changes include exemp ing indi ec
business pa ne s (i.e. non- i s - ie supplie s) om ull
due diligence unless he e is c edible e idence o non-
compliance, pos poning he i s wa e o CS3D applica-
ion un il 2028, and ex ending he in e al be ween egula
sus ainabili y assessmen s o la ge companies om one
o i e yea s. The package also emo es he obliga ion
o e mina e business ela ionships as a las eso , lim-
i ing in o ma ion eques s om small and medium-sized
business pa ne s ( hose wi h ewe han 500 employees)
o EU-wide olun a y sus ainabili y epo ing s anda ds.
Addi ionally, i emo es EU-ha monised ci il liabili y con-
di ions, enabling na ional laws o es ablish ci il liabili y
s anda ds. I also elimina es he equi emen o membe
s a es o pe mi ade unions o NGOs o ini ia e ep e-
sen a i e ac ions, allowing na ional legisla ion o de e -
mine whe he i s ci il liabili y egula ions supe sede hose
o hi d coun ies whe e ha m occu s.2
An app aisal o he Omnibus package
Risk hidden a deepe le els o he supply chain
In o de o unde s and he e ec s o supply chain egula-
ions, i is necessa y o unde s and he opological cha -
ac e is ics o supply ne wo ks (i.e., a company’s “chain o
ac i i ies”) and he ele an isk dis ibu ions. The e o e,
we examine he implica ions o supply chain due diligence
egula ions. These egula ions a e de i ed om well-es-
ablished phenomena inhe en in p oduc ion ne wo ks
and supply chains a he i m le el (Bacilie i e al., 2023).
2
See h ps:// inance.ec.eu opa.eu/news/omnibus-package-2025-04-01_
en and h ps:// inance.ec.eu opa.eu/publica ions/commission-simpli-
ies- ules-sus ainabili y-and-eu-in es men s-deli e ing-o e -eu6-bil-
lion_en.
One possible s a ing poin is o di ide i ms’ ac i i ies in o
so-called high impac sec o s. This app oach was consid-
e ed du ing he deba e abou he o iginal egula ion bu was
no ul ima ely implemen ed. High-impac sec o s a e hose
in which he e is a high isk o human igh s and en i onmen-
al s anda ds iola ions. These sec o s included he whole-
sale ade o ex iles, clo hing and oo wea , ag icul u al aw
ma e ials, li e animals, wood, ood and be e ages; ag icul-
u e, o es y and ishe ies; he ex ac ion o mine al esou c-
es; he manu ac u ing o ood p oduc s, be e ages, ex iles,
lea he and ela ed p oduc s; as well as he manu ac u ing
o basic me al p oduc s, o he non-me allic mine al p od-
uc s and ab ica ed me al p oduc s. I was assumed ha isk
could be easily iden i ied in high-impac sec o s because
company supplie s in hese sec o s a e ound a he i s ie .
Howe e , he e may be hidden isks a deepe le els o he
supply chain (Diem e al., 2022). To his end, we use a syn-
he ic ne wo k o compa e he isk indica o s o he o igi-
nal di ec i e wi h hose o he Omnibus package (Hu e
al., 2023). Al hough he da ase is syn he ic, i e lec s he
p ope ies o eal-wo ld da a, such as sec o al in e wo-
enness (based on he Wo ld Inpu -Ou pu -Tables, WIOT),
s uc u al i m cha ac e is ics (s uc u al business s a is-
ics, SBS) and in e na ional ade (In e na ional T ade Da-
abase a he P oduc -Le el, BACI).
The o iginal di ec i e holds i ms wi hin i s scope espon-
sible o he en i e alue chain. This is impo an because
he global p oduc ion ne wo ks o i ms a e dense and
in e connec ed, wi h ewe han h ee deg ees o sepa a-
ion be ween each Eu opean company and po en ial non-
EU iola o s. This has signi ican liabili y implica ions, as
e en a single iola o in he ne wo k can a ec a la ge
po ion o he global economy.
The Omnibus package ocuses on Tie 1 supplie s, iden-
i ying isk p o iles o human igh s iola ions and egula-
o y compliance. I highligh s high- isk sec o s ha align
wi h he Eu opean Commission’s high-impac sec o s.
I should be no ed ha he syn he ic ne wo k model ex-
cludes ag icul u e, o es y and ishing, bu includes o he
high- isk a eas such as compu e s, chemicals, pha ma-
ceu icals, ai anspo and mo o ehicles. These sec o s
a e in e connec ed wi h adi ional high-impac sec o s,
sugges ing ha a b oade egula o y scope han ha co -
e ing only Tie 1 supplie s would be needed o un eil hese
isks. Howe e , by limi ing he scope mainly o he i s ie ,
he Omnibus package educes he due diligence cos s
ha i ms would incu i hey also co e ed lowe ie s. I
also subs an ially educes he egula ion’s e ec i eness.
The indings o he deepe ie s o he supply chain e-
eal a egula o y pa adox. Al hough hese ie s exhibi
ZBW – Leibniz In o ma ion Cen e o Economics 167
Fo um
signi ican o e lap and p esen he g ea es oppo uni y
o compliance impac , he Omnibus package p ima ily
a ge s Tie 1 supplie s.
The p ac ices o i s - ie supplie s a e usually well known,
bu he pe o mance o he supply chain also hinges on
hei supplie s and beyond. These lowe - ie supplie s a e
much less isible and may no e en be known o he “ o-
cal i m” (Choi e al., 2021). In o ma ion abou he deepe
ie s o he supply chain is sca ce, ye impo an o assess
he o e all pe o mance o he supply chain. Fo example,
Toyo a collabo a ed wi h local supplie s o sha e supply
chain in o ma ion, enabling hem o manage he impac o
he 2011 ea hquake and subsequen sunami in Japan.
The company de eloped a sys em called RESCUE (REin-
o ce Supply Chain Unde Eme gency). This da a sys em
suppo s Japanese manu ac u ing and con ains in o ma-
ion and ulne abili y assessmen s on 650,000 supplie
si es (Taghizadeh e al., 2021).
Focusing on he i s ie es ic s he abili y o he egula-
ion o deli e sys emic e iciency gains h ough moni o ing
o he deepe ie s. Companies usually iden i y iola ions in
a eas whe e he e a e exis ing due diligence mechanisms,
bu he e a e s ill black spo s. Fo example, he UN’s Guid-
ing P inciples on Business and Human Righ s ecommend
p io i ising due diligence in high- isk a eas. Howe e , o-
cusing esou ces solely on hese a eas may cause i ms o
o e look human igh s issues elsewhe e (Smi e al., 2021).
Unce ain ies in in e p e a ion need o be cla i ied. While
he Omnibus package p ima ily limi s i s scope o compa-
nies in he i s ie , i also conside s hose in he second
ie o be wi hin i s emi i he e is “c edible e idence” o
iola ions. I emains unclea how “c edible e idence” will
be in e p e ed in p ac ice. Addi ionally, clea ules and
guidance is lacking on he ype o e idence ha companies
mus p o ide in o de o demons a e compliance wi h he
con ac ual obliga ion ha equi es supplie s o adhe e o
en i onmen al and social s anda ds. Applying he syn he ic
model, we ind ha b eaches beyond he i s ie a e highly
likely. I he egula ion is in e p e ed s ic ly, his could e-
qui e he moni o ing o almos all companies and millions
o supply links. The cos and e ec i eness o he egula ion
will depend on i s de ac o implemen a ion. Es ablishing a
se o clea ly de ined ules could educe egula o y unce -
ain y while p ese ing he egula ion’s e ec i eness.
The o iginal o mula ion o he EU CS3D uses he e ms
“business ela ionships” and “supplie s” in e changeably,
wi h he aim o holding companies accoun able o hei
supplie s. F om a ne wo k pe spec i e, i ms a e nodes
and business ies a e links. Nodes can ha e a e y la ge
numbe o ies. Focusing on nodes a he han links o -
e s se e al ad an ages om a ne wo k- heo e ic poin o
iew. Fi s ly, supply chains a e highly dynamic (Choi, 2023).
Fo example, a ecen p ep in ha cons uc ed coun y-
wide supply chains o e ime using VAT da a om Hun-
ga y ound ha app oxima ely 60% o supply links las ed
no longe han a yea . In e ms o nodes, i.e. companies
appea ing o disappea ing om he ne wo k, he chu n is
subs an ially smalle , a a ound 20%-30% (Reisch e al.,
2025). Hence, assessmen schemes ha ocus on moni o -
ing all o a speci ic subse o companies simpli y he p o-
cess wi h espec o link-based moni o ing. Fu he mo e,
he Omnibus package lacks a h eshold o business e-
la ionships, elying on ad hoc assessmen s o new ones.
Secondly, he e is a simple ne wo k- heo e ic a gumen
ha node-based moni o ing schemes op imally balance
e ec i eness and e iciency. To illus a e his, conside a
link-based moni o ing scheme in which companies a e e-
qui ed o moni o hei supplie s. Now, imagine ha , as a
egula o , you a e seeking o es ablish an op imal h eshold
abo e which business ela ionships should be moni o ed.
This h eshold should be se low enough o ensu e ha
each p oblema ic company is moni o ed by a leas one
o he company, he eby maximising e ec i eness. A he
same ime, o a oid edundancy and inc ease e iciency, he
h eshold should be high enough o ensu e ha indi idual
companies, pa icula ly smalle ones, a e no moni o ed
and audi ed by an excessi e numbe o o he companies.
These wo opposing endencies a e p ecisely balanced a
he poin whe e a s ongly connec ed componen (SCC)
o all moni o ed ela ionships eme ges (Newman, 2003).
An SCC is de ined as a pa o a ne wo k in which each
node can be eached om all he o he nodes by ollowing
a pa h along he ne wo k’s links. When he size o he ne -
wo k is kep ixed and he numbe o moni o ed ela ion-
ships is inc eased, he SCC eme ges in a highly nonlinea
and “all o no hing” manne o many ealis ic ne wo k o-
pologies. Below a c i ical h eshold o moni o ed ela ion-
ships, he SCC disin eg a es, and isky supplie s become
unde ec able, as hey canno be eached ia he ne wo k.
Abo e he c i ical h eshold, a small-wo ld e ec occu s,
whe eby companies need o be moni o ed by an inc eas-
ingly la ge numbe o o he companies (Wa s & S oga z,
1998).3 The op imal balance o e iciency and e ec i e-
ness he e o e occu s whe e he SCC begins o eme ge.
3 The p ocess is ma hema ically analogous o he p opaga ion o an
epidemic on a ne wo k. I he ansmission a e o e ec i e ep oduc-
ion numbe o a pa hogen is low enough, he e will be no ou b eak o
disease. Howe e , i i exceeds a ce ain h eshold, in ec ions s a o
accumula e exponen ially due o an inc eased numbe o indi iduals
wi hin he social ne wo k o an in ec ed pe son who can be eached –
and a small wo ld eme ges. In his analogy, la ge companies would
play he ole o supe sp eade s o supply chain due diligence isks.
In e economics 2025 | 3
168
Fo um
In heo y, one could de ise an op imal egula o y scheme
by conside ing a speci ic SCC, whe e each node in he
ne wo k is pa o he SCC and is connec ed o only one
o he node ia a moni o ed ela ionship. Fo a ne wo k
wi h N nodes, his could be he maximum spanning ee
o he supply ne wo k, consis ing o N-1 links. F om a sys-
ems poin o iew, he same si ua ion a ises wi h node-
based due diligence, whe eby each company is assessed
once by a ele an au ho i y wi hou he need o unde -
s and he ne wo k s uc u e, he eby educing he epo -
ing bu den.
An example o b eaches in he supply chain
EU companies a e held accoun able o ups eam ac ions
ha may be beyond hei di ec con ol. This applies, o
example, o companies ope a ing in he Uyghu egion.
The NGO Jewish Wo ld Wa ch es ima es ha since 2017,
mo e han wo million Uyghu s ha e been o cibly elo-
ca ed o labou camps used by mo e han 2,000 mul ina-
ional companies in hei supply chains.4 One o he local
supplie s is he Xinjiang Non e ous Me al Indus y G oup,
a s a e-owned en e p ise in he Uyghu egion ha sup-
plies c i ical aw ma e ials such as coppe , zinc, li hium,
gold and nickel o he au omo i e indus y. I s subsidia y,
Xinxin Mining, supplies Xinjiang Zhonghe Co, L d, a ma-
jo aluminium smel e ha p oduces 180,000 onnes o
high-pu i y aluminium annually. Xinjiang Zhonghe expo s
4 See h ps://jww.o g/si e/uyghu -china- o ced-labo -da abase/.
globally, including o Japan, Eu ope, Sou h Ko ea and he
US, making i he wo ld’s la ges p oduce o high-pu i y
aluminium. I di ec ly supplies BMW B illiance and he
Min h G oup, which design and manu ac u e au omo i e
componen s.
The Min h G oup ope a es mo e han 50 plan s and se es
au omo i e ma ke s in 30 coun ies, supplying almos all
o he wo ld’s o iginal equipmen manu ac u e s (OEMs),
as shown in Figu e 1. I s posi ion as a hub exposes buye s
o signi ican isks, pa icula ly in ela ion o human igh s
abuses. Xinjiang Non e ous Me al Indus y G oup, Xinji-
ang Xinxin Mining Indus y Co, Xinjiang Zhonghe and he
Min h G oup ha e been di ec ly linked o Uyghu o ced
labou (Jewish Wo ld Wa ch, 2023).
F om he pe spec i e o he ca manu ac u e s, he link o
he mining indus y in he Uyghu egion is no immedia e-
ly clea . While he Min h G oup is an au o pa s supplie
o mos ca manu ac u e s, i s link o he Uyghu mining
indus y is no di ec ly appa en (Ho mann e al., 2018).
Fu he ups eam he e a e indi ec links o supplie s ha
a e in po en ial b each o he egula ion. The ne wo k pe -
spec i e enables he acking o p oblema ic companies.
Idiosync a ic due diligence e sus sys emic app oach
The EU CS3D in ol es “du ies o di ec o s” o compa-
nies ha a e in scope. These include es ablishing and
moni o ing due diligence p ocesses, as well as in eg a ing
Figu e 1
The “small wo ld e ec ” a wo k in he ca indus y
Sou ce: Au ho s’ own illus a ion.
Xinjiang Zonghe
GMC
Isuzu
Skoda
Suzuki
Honda
Lexus
Toyo a
Opel
Da sun
Dodge
Buick
Fia Ch ysle
Acu a
Ben ley
Audi
Poles a
Hyundai
Lincoln
Land Ro e
Sea
In ini y Genesis Maybach
Mi subishi
Po sche
Vin as
Cadillac
Jeep
BMW
Kia
Lucid
Mus ang
Rolls Roye
Volkswagen Nissan
Che ole
Jagua
Fo d
Min h G oup
BMW B illiance
Xinjiang Non e ous Me al Indus y G oup
Renaul
Peugeo
ZBW – Leibniz In o ma ion Cen e o Economics 169
Fo um
hem in o he company’s s a egy. In ul illing hei du y o
ac in he bes in e es s o he company, di ec o s mus
conside he impac o hei decisions on human igh s,
clima e change and he en i onmen . This app oach has
been amended by he Omnibus package. Al hough i ha -
monises epo ing equi emen s ac oss di e en egula-
o y opics, he Omnibus package lacks a s anda dised
app oach o EU CS3D epo ing. This could lead o com-
panies de eloping idiosync a ic due diligence p ocesses.
Consequen ly, ie -one supplie s wo king wi h mul iple in-
scope companies may ace edundan moni o ing, esul -
ing in excessi e bu eauc acy wi hou al e ing co po a e
beha iou . Such idiosync asies a ec no only co po a e
p ac ices bu also implemen a ion a he coun y le el.
Conclusions
The objec i es o he EU CS3D a e in line wi h Eu opean
alues. In he absence o social and en i onmen al ule
en o cemen in ce ain hi d coun ies, i p i a ises com-
pliance cos s in complex supply chains. Following ie ce
c i icism o he cos o egula ion, he EC p oposed an
amendmen in he o m o he so-called Omnibus pack-
age. Agains he backd op o egula o s needing o bal-
ance e ec i eness wi h cos -e iciency, his pape c i i-
cally app aises his p oposed egula ion. The Omnibus
package p oposes limi ing liabili y o di ec supplie s. The
aim is o educe compliance cos s by exemp ing i ms
om cos ly due diligence p ocedu es. Howe e , his e-
duces he scope o he egula ion, he eby unde mining
i s e ec i eness. Many companies ha a e po en ially in
b each a e likely o ope a e in he second ie . This implies
ha including deepe le els o he supply chain is c i ical
o main aining he egula ion’s e ec i eness.
Ul ima ely, he a gumen agains a wide de ini ion o com-
panies in scope is ha conside able due diligence cos s
would be incu ed. These cos s would be incu ed by
companies wi hin scope and hei supplie s, who would
likely ace due diligence p ocesses om mul iple clien s.
The amendmen , like he o iginal CS3D, elies on idiosyn-
c a ic, non-s anda dised due diligence p ocedu es. Such
conce ns could be add essed h ough sys emic solu ions
o supply chain egula ions. One possible solu ion would
be a cen alised blacklis ing and whi elis ing ce i ica ion
sys em.
Re e ences
Bacilie i, A., Bo sos, A., As udillo-Es e ez, P., & La ond, P. (2023). Fi m-
Le el P oduc ion Ne wo ks: Wha Do We (Really) Know? INET Wo king
Pape , 33.
Choi, T. Y. (2023). The Na u e o Supply Ne wo ks. Ox o d Uni e si y P ess.
Choi, T. Y., Na ayanan, S., No ak, D., Olhage , J., Sheu, J. B., & Wienga -
en, F. (2021). Managing Ex ended Supply Chains. Jou nal o Business
Logis ics, 42(2), 200–206.
Diem, C., Bo sos, A., Reisch, T., Ke ész, J., & Thu ne , J. (2022). Quan-
i ying Fi m-Le el Economic Sys emic Risk om Na ion-Wide Supply
Ne wo ks. Scien i ic Repo s, 12(1), 7719.
Felbe may , G., F iesenbichle , K., Ge schbe ge , M., Klimek, P., & Meye ,
B. (2024). Designing EU Supply Chain Regula ion. In e economics,
59(1), 28–34.
Ho mann, H., Schlepe , M. C., & Blome, C. (2018). Con lic Mine als and
Supply Chain Due Diligence: An Explo a o y S udy o Mul i-Tie Sup-
ply Chains. Jou nal o Business E hics, 147, 115 –41.
Hu , J., Ledebu , K., Meye , B., F iesenbichle , K., Ge schbe ge , M.,
Thu ne , S., & Klimek, P. (2023). Supply Chain Due Diligence Risk
Assessmen o he EU: A Ne wo k App oach o Es ima e Expec -
ed E ec i eness o he Planned EU Di ec i e. a Xi , P ep in a X-
i :2311.15971.
Newman, M. E. J. (2003). P ope ies o Highly Clus e ed Ne wo ks. Physi-
cal Re iew, E 68(2), 026121.
Reisch, T., Bo sos, A., & Thu ne . S. (2025). Supply Chain Ne wo k Rewi -
ing Dynamics a he Fi m-Le el. a Xi .
Smi , L., Holly, G., McCo quodale, R., & Neely, S. (2021). Human Righ s
Due Diligence in Global Supply Chains: E idence o Co po a e P ac-
ices o In o m a Legal S anda d. The In e na ional Jou nal o Human
Righ s, 25(6), 945–73.
Taghizadeh, E., Venka achalam, S., & Chinnam, R. B. (2021). Impac o
Deep-Tie Visibili y on E ec i e Resilience Assessmen o Supply
Ne wo ks. In e na ional Jou nal o P oduc ion Economics, 241, 108254.
Wa s, D. J., & S oga z, S. H. (1998). Collec i e Dynamics o “Small-
Wo ld” Ne wo ks. Na u e, 393.6684, 440–42.
