Corporate sustainability due diligence duty (CSDDD)
On 25 July 2024, the Directive on corporate sustainability due diligence (Directive 2024/1760) entered into force. The aim of this Directive is to foster sustainable and responsible corporate behaviour in companies’ operations and across their global value chains. The new rules will ensure that companies in scope identify and address adverse human rights and environmental impacts of their actions inside and outside Europe.
What are the benefits of these rules?
For citizens
For companies
For developing countries
What are the obligations for companies?
Corporate due diligence duty
This Directive establishes a corporate due diligence duty. The core elements of this duty are identifying and addressing potential and actual adverse human rights and environmental impacts in the company’s own operations, their subsidiaries and, where related to their value chain(s), those of their business partners. In addition, the Directive sets out an obligation for large companies to adopt and put into effect, through best efforts, a transition plan for climate change mitigation aligned with the 2050 climate neutrality objective of the Paris Agreement as well as intermediate targets under the European Climate Law.
In February 2025, the Commission adopted an Omnibus package to simplify due diligence requirements to better support responsible business practices.
Which companies will the new EU rules apply to?
+/- 6,000 companies – >1000 employees and >EUR 450 million turnover (net) worldwide.
Large non–EU companies:
+/- 900 companies – > EUR 450 million turnover (net) in EU.
The Directive contains provisions to facilitate compliance and limit the burden on companies, both in scope and in the value chain.
Micro companies and SMEs are not covered by the proposed rules. However, the Directive provides supporting and protective measures for SMEs and SMCs (Small Midcaps Companies) with no more than 500 companies which could be indirectly affected as business partners in value chains.
