EU regulationen
Due diligence directive (CSDDD)
The EU directive requiring large companies to conduct due diligence on adverse human rights and environmental impacts in their value chains.
The CSDDD (Corporate Sustainability Due Diligence Directive, Directive 2024/1760) requires large companies to exercise due diligence regarding actual and potential adverse impacts on human rights and the environment in their own operations and value chains.
Companies in scope (progressive application):
- 2027: companies with over 5,000 employees and EUR 1,500M worldwide turnover
- 2028: companies with over 3,000 employees and EUR 900M turnover
- 2029: companies with over 1,000 employees and EUR 450M turnover
Main obligations:
- Identification and assessment of actual and potential adverse impacts
- Prevention and mitigation of potential impacts
- Cessation and remediation of actual impacts
- Complaints mechanism accessible to affected stakeholders
- Monitoring and reporting on the effectiveness of measures
- Climate transition plan compatible with the Paris Agreement
Companies failing to comply face fines (up to 5 % of worldwide turnover) and civil liability for damages caused by their negligence.
This directive directly affects importers whose supply chains extend into high-risk countries.