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Corporate Sustainability Due Diligence Directive (CSDDD)

The European Union

The provisional agreement says companies must implement due diligence strategies to mitigate human rights violations and negative environmental impacts from their operations. It applies to EU companies with more than 1,000 employees and a global turnover of €450 million+; or non-EU companies with a turnover of €450 million+ generated in the EU market.

Companies of a certain size will also have to adopt a plan to ensure that their business strategy is compatible with limiting global warming to 1.5°C, in line with the Paris Agreement.

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  • Current Version: 2024
  • First Published: 2024

About

Name Corporate Sustainability Due Diligence Directive (CSDDD)
Owner(s) The European Union
First Published 2024
Current Version Published 2024
Regulation Date of Enforcement 2026-07-26
Licensing Terms N/A
Membership/Participation Fee Login to view Lorem ipsum dolor sit amet, consectetur adipiscing elit. Morbi elementum vestibulum lobortis.  
Members List Login to view Lorem ipsum dolor sit amet, consectetur adipiscing elit. Morbi elementum vestibulum lobortis.  
Number of Participants N/A
Applicable Size of Entity Large

Regulation Details

Mandatory/Voluntary Status Mandatory
Nexus Economic
Entities Covered For-profit companies
Key Requirements Supplier/Risk Monitoring, External Reporting, Product Mapping, Supplier Corrective Action Plan, Supplier Training, Third Party Assurance, Supplier Engagement, Supply Chain Mapping, Supplier Assessments, Remediation Plan, ESG Risk Analysis
Compliance Criteria Number of employees, Turnover
Turnover Threshold €450 million
Due Diligence Supplier engagement, Risk assessment, Monitoring, Public disclosure, Traceability
Import Declarations None
Penalty Types Compensation, Sanctions, Compliance order, Monetary fine
Enforcement Timeline 2027: The first companies will need to comply with the Directive's obligations. This applies to EU companies with over 5,000 employees and a net worldwide turnover of more than €1,500 million, and non-EU companies with a net EU turnover of more than €1,500 million. 2028: The next set of companies must comply, which includes EU companies with over 3,000 employees and a net worldwide turnover of more than €900 million, and non-EU companies with a net EU turnover of more than €900 million. 2029: All other in-scope companies, including EU and non-EU franchisors/licensors, will need to comply with the Directive's obligation
Penalties pecuniary penalties

Governance

Scheme Holder Type Government(s)
An entity comprising representatives from one or more national governments or a supranational organisation, such as the EU, that directly sets laws applicable in its jurisdiction.
Core Focus Regulation
A body of law passed by a national government, or by a supranational organisation such as the EU.
Claim Type No claim type

Assurance

Verification Requirement N/A
Additional Verification Login to view Lorem ipsum dolor sit amet, consectetur adipiscing elit. Morbi elementum vestibulum lobortis.  
Assessor Qualifications N/A
Applicability Corporate-level