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EU Corporate Sustainability Due Diligence Directive

EU CSDDD · European Union

In force Last updated 1 June 2026

Plain-language summary

The EU Corporate Sustainability Due Diligence Directive (CSDDD) is the most consequential piece of HREDD legislation passed in a generation. It requires large companies operating in the EU to conduct ongoing due diligence across their upstream supply chains and, for some sectors, their downstream distribution chains. For suppliers in the Global South, this means your buyers will be legally required to understand and address human rights and environmental risks connected to your operations.

The Directive entered into force in July 2024. EU member states now have until July 2027 to transpose it into national law, after the original transposition deadline was extended by one year. Companies will be required to comply on a phased schedule based on size, beginning with the largest companies in 2027 and extending to smaller in-scope companies through 2029.

For suppliers, the most immediate practical effect is likely to be increased information requests from buyers. Companies subject to the CSDDD must map their supply chains, assess risks, and take meaningful prevention and remediation measures. They cannot do this without cooperation from their suppliers. Whether that cooperation is structured as partnership or as a compliance burden largely depends on your buyer relationships and your own capacity to document your practices.

Key obligations

  1. 1

    Adopt a due diligence policy

    Companies must adopt and maintain a due diligence policy, updated annually, describing their approach to due diligence across their operations and value chains.

  2. 2

    Map and assess adverse impacts

    Companies must identify actual and potential adverse human rights and environmental impacts in their own operations and those of their subsidiaries and business partners across the supply chain.

  3. 3

    Prevent and mitigate potential impacts

    Where potential adverse impacts are identified, companies must take appropriate measures to prevent or mitigate them, including through contractual assurances from business partners.

  4. 4

    Cease, remediate, and restore for actual impacts

    Where actual adverse impacts occur, companies must cease the activity causing the harm, or where cessation is not possible, minimise the impact and provide remediation to those affected.

  5. 5

    Establish a complaints and notification procedure

    Companies must establish a procedure for persons and organisations to submit complaints where they have legitimate concerns about actual or potential adverse impacts.

  6. 6

    Monitor due diligence effectiveness

    Companies must periodically assess the effectiveness of their due diligence policy and measures, at least once a year.

  7. 7

    Communicate publicly

    Companies must report on their due diligence annually, in a manner consistent with the Corporate Sustainability Reporting Directive (CSRD) where applicable.

Implementation timeline

July 2024

Directive enters into force

The CSDDD was published in the Official Journal of the EU and entered into force.

July 2027 (extended)

Transposition deadline

EU member states must incorporate the Directive into national law by this date. The original deadline was July 2026; it was extended by the European Commission.

Q3 2027

First companies in scope

Companies with 5,000+ employees and EUR 1.5bn+ turnover must comply.

2028

Second tier in scope

Companies with 3,000+ employees and EUR 900m+ turnover must comply.

2029

Full scope

All in-scope companies, including those with 1,000+ employees and EUR 450m+ turnover, must comply.

Change log

Official sources