Corporate Sustainability Due Diligence Directive (CSDDD)

This Directive requires companies above certain size thresholds to carry out risk-based human rights and environmental due diligence with respect to their own operations, their subsidiaries and business partners in their chain of activities: integrating due diligence into policies and risk management, identifying, assessing and prioritising adverse impacts, preventing and bringing impacts to an end, providing remediation, engaging with stakeholders, establishing a complaints mechanism, and reporting publicly each year. As amended by Directive (EU) 2026/470 (Omnibus I), the thresholds are raised to more than 5,000 employees and a worldwide net turnover of more than EUR 1.5 billion (for non-EU companies, a net turnover generated in the EU of more than EUR 1.5 billion), the climate transition plan obligation and the EU harmonised civil liability provision are deleted, and the maximum fine is 3% of worldwide net turnover; Member States must complete transposition by 26 July 2028, and the Directive applies from 26 July 2029. Companies below the thresholds are not directly covered but may, as business partners, receive information requests from in-scope customers.