CSDDD (Corporate Sustainability Due Diligence Directive)

The Corporate Sustainability Due Diligence Directive (CSDDD) is an EU regulation that requires companies to identify, prevent, mitigate and account for adverse human rights and environmental impacts in their operations and value chains. It applies to large EU and non-EU companies operating in the EU, with phased implementation from 2027 based on employee and revenue thresholds. The CSDDD mandates the adoption of climate transition plans aligned with the Paris Agreement and establishes enforcement mechanisms, including penalties of up to 5% of worldwide turnover for non-compliance.