The EU Corporate Sustainability Due Diligence Directive (CSDDD or CS3D) requires companies to be much more transparent about their human rights and environmental impacts. The CSDDD is a regulation designed to help companies identify and mitigate sustainability-related risks from their supply chains and sourcing operations.
The CSDDD is a companion law to the EU Corporate Sustainability Reporting Directive (CSRD) and a component of the EU Green Deal – the European Union’s strategy to make its economy more sustainable.
In 2024, the CSDDD will become EU law and should be transposed into national law by the Member States by 2026. At that point, the CSDDD will apply to a group of EU companies, only to encompass a host of non-EU businesses in 2029.
The CSDDD will apply to the following companies:
The CSDDD will require companies to:
Getting ready for the CSDDD? Take a look at our Regulatory Snapshot. In this guide, we’ll help you understand what the directive means for your business, what you need to do, and how to do it.
Applicable to:
The proposed EU directive establishes a corporate due diligence duty to identify and mitigate potential negative impacts on human rights and the environment within their operations or their value chains. In case of violations, a company must carry out remediation efforts, including financial compensation for the affected parties. Following the directive, the member states should establish legal liability for any reported damages.