Corporate Sustainability Due Diligence Directive.
The EU law requiring companies to identify, prevent, and address human rights and environmental risks across their entire value chain.
What is CSDDD?
The CSDDD (Directive 2024/1760, as simplified by Omnibus I — Directive 2026/470) requires large companies to conduct mandatory human rights and environmental due diligence across their operations and value chains. This includes identifying adverse impacts, preventing them, mitigating their effects, and providing remedy where harm occurs.
Who does it apply to?
The CSDDD now applies to a single scope threshold following the Omnibus I simplification (Directive 2026/470). EU companies with more than 5,000 employees AND more than 1.5 billion euros global annual turnover must comply from 26 July 2029. Non-EU companies generating more than 1.5 billion euros net turnover in the EU are also in scope, with no employee threshold. Member states must transpose the directive by 26 July 2028.
Key requirements
Companies must establish due diligence policies, map their value chain for adverse impacts, implement prevention and mitigation measures, set up a complaints mechanism, monitor effectiveness, and publicly communicate on due diligence. Directors have a duty of care to oversee these processes.