Corporate Sustainability Due Diligence Directive Overview

This white paper discusses the Corporate Sustainability Due Diligence Directive (CSDDD), which introduces new obligations for companies to address environmental and human rights impacts throughout their operations and supply chains. It outlines the requirement for large companies to implement risk-based due diligence processes, aimed at identifying, preventing, and mitigating potential negative impacts. The paper describes the implementation timeline for the CSDDD, which will affect companies based on size and turnover, with compliance deadlines ranging from July 2027 to July 2029. It also details the challenges companies may face in integrating these due diligence measures into their existing policies and risk management frameworks. Additionally, the paper explains how the CSDDD fits within the European Union's broader sustainability regulatory landscape, including its relationship with other regulations like the EU Deforestation Regulation and the Conflict Minerals Regulation. By complying with the CSDDD, companies can align their practices with sustainability reporting frameworks and enhance their reputation within the global market.