In short: The EU Corporate Sustainability Due Diligence Directive (CSDDD) entered into force on 25 July 2024. It requires large companies to conduct risk-based due diligence on human rights and environmental impacts across their operations and chains of activities.
What does the CSDDD require?
- Integrating due diligence into policies and risk management
- Identifying and assessing adverse impacts
- Preventing, mitigating and ending impacts
- Complaints procedures and stakeholder engagement
- A climate transition plan
How does it affect suppliers?
Suppliers of in-scope companies can expect more supplier codes of conduct, questionnaires, audits and contractual assurances.
Key takeaways
- CSDDD entered into force on 25 July 2024.
- Due diligence extends through value chains.
- Suppliers should prepare for more sustainability audits.
Frequently asked questions
When do obligations apply?
Obligations are phased in over several years depending on company size; timelines may be subject to later EU amendments.
Does CSDDD apply to non-EU companies?
Yes, if they meet EU turnover thresholds.
How do audits help?
Supplier audits provide evidence of due diligence on social and environmental risks.