CSDDD is one of the EU’s central sustainability laws that requires companies to conduct thorough due diligence on human rights and environmental impacts across their entire value chain.
The Corporate Sustainability Due Diligence Directive (CSDDD) is a groundbreaking EU regulation that requires large companies to assess, prevent, and mitigate human rights and environmental impacts across their operations and entire value chains.
Identify adverse impacts related to human rights and the environment, as well as monitor and address risks in their own operations, subsidiaries, and both direct and indirect business partners. They also have to prioritize the most severe risks and take preventive or remedial action, embracing a model of shared responsibility.
EU companies with +1,000 employees and €450M+ turnover globally.
Non-EU companies with €450M+ turnover within the EU.
Parent companies of groups meeting the same thresholds.
Royalty-based EU companies operating with €22.5M+ in royalties, and €80M+ global net turnover.
Although enforcement begins in 2027, early adopters gain key advantages like imporved risk management, more resilient value chains, stronger brand trust, and alignment with ESG and CSRD goals
Decide whether CSDDD will be a compliance-led effort or part of a broader business transformation strategy.
Set up a governance framework and assign roles for oversight and execution.
Map your value chain, identify human rights and environmental risks, and prioritise them based on severity and likelihood.
Assess gaps in your processes, data systems, and governance.
Deploy tools for data management, monitoring, and reporting.
Align with the Paris Agreement and integrate with CSRD reporting