CSDDD (Corporate Sustainability Due Diligence Directive)

The EU Corporate Sustainability Due Diligence Directive (CSDDD) (Directive (EU) 2024/1760) requires large companies to conduct mandatory human rights and environmental due diligence across their value chains. The CSDDD was published in the Official Journal on 5 July 2024 and entered into force on 25 July 2024. Companies in scope must: adopt and implement a due diligence policy; identify actual and potential adverse impacts on human rights and the environment in their operations and value chains; prevent, mitigate, or end identified impacts; establish or participate in a complaints mechanism; and publicly report on due diligence. Under Omnibus I (December 2025 provisional agreement): CSDDD application has been delayed by one year; scope is proposed to be reduced to companies with >1,000 employees and net turnover >€450M.

CSDDD (Directive (EU) 2024/1760), OJ L, 5 July 2024; Omnibus I provisional agreement (December 2025); OECD Due Diligence Guidance for Responsible Business Conduct (2018).

Manufacturers, brands, and importers in the global value chain will face CSDDD obligations directly (as in-scope companies) or indirectly (as suppliers to in-scope companies). The CSDDD’s human rights due diligence obligations align with OECD and UN Guiding Principles. Companies should begin supply chain mapping, adverse impact identification, and supplier engagement now. Omnibus I simplifications (pending formal adoption) will reduce scope but not eliminate the core framework.