Enhanced Due Diligence Services (EDD)
TDi Sustainability provides data-driven services for Enhanced Due Diligence (EDD), empowering businesses to make informed and responsible decisions. Learn more about EDD and how TDi can support your organisation’s strategies.
What is Enhanced Due Diligence (EDD)?
Enhanced Due Diligence (EDD) is a more comprehensive process of assessing potential business risks beyond the standard checks. It provides a deeper understanding of business practices and ensures compliance with legal and ethical standards.
EDD is a critical procedure for organisations to address and mitigate potential risks, especially in high-risk scenarios, and provides transparency in business transactions to minimise financial, operational and reputational damage.
EDD vs SDD and CDD
The differences between EDD, SDD (Standard Due Diligence), and CDD (Customer Due Diligence) lie in the depth of the investigation, the extent of the ongoing monitoring, and the level of risk associated with the business.
EDD vs SDD and CDD
EDD (Enhanced Due Diligence)
EDD (Enhanced Due Diligence) involves a thorough investigation into an organisation’s background when, for example, the organisation involves a high-risk entity such as a politically exposed person (PEP) operating in a high-risk country. EDD measures are stringent, exhaustive and consistent. They involve a deeper understanding and monitoring of business practices by requiring organisations to provide ongoing and additional information beyond the scope of SDD and CDD.
SDD (Standard Due Diligence)
SDD (Standard Due Diligence) is a basic form of due diligence. This may include companies that conduct low-volume transactions that are straightforward and transparent. SDD may involve less detailed identity checks and lower levels of ongoing monitoring.
CDD (Customer Due Diligence)
CDD (Customer Due Diligence) is a process where relevant information about clients is collected and evaluated for potential risks or illegal intentions. It includes verifying customers’ identities and determining potential risks of illegal intentions towards the business relationship. Customer Due Diligence is a standard requirement across many regions and industries and requires companies to have a clear understanding of their customers and the nature of their activities.
Who needs to do EDD?
Whether you’re a small business owner or part of a large corporation, understanding when and how to conduct EDD is crucial in this ever-changing business environment.
Companies operating in high-risk sectors, dealing with large transactions, or engaging with politically exposed persons (PEPs) typically require Enhanced Due Diligence. It is an essential step for businesses aiming to maintain integrity and reputability while mitigating potential risks.
How do you do EDD?
EDD involves an in-depth examination of a business’s background, context and relationships, financial history, and reputation. It includes scrutinising their source of funds, identifying suppliers, and assessing their business’s risk profile.
Tailored EDD Strategies for Your Business
At TDi Sustainability, we provide expert support to enhance your Enhanced Due Diligence strategy. Our sophisticated digital tools, such as the Alert Index for Responsible Sourcing (AIRS), the TDi CAHRA (Conflict-Affected and High Risk Areas) Index, and the Risk Readiness Assessment, provide valuable data for thorough risk assessments. We align EDD strategies with your core policies, procedures and commercial business models, helping you make responsible and sustainable decisions.
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