Corporate Sustainability Due Diligence Directive
The Corporate Sustainability Due Diligence Directive, or CSDDD, is a European Union legal instrument establishing corporate due diligence duties concerning adverse human rights and environmental impacts. It addresses covered companies' own operations, subsidiaries, and relevant business-partner activities, with requirements determined by the current directive and national transposition.
In simple terms
The directive turns parts of risk-based responsible-business conduct into legal duties for companies within its scope. Supply chain due diligence is related, but the directive uses its own defined coverage and requirements. Its process covers integrating due diligence into policies and systems; identifying and assessing adverse impacts; preventing, mitigating, ending, or minimizing them; monitoring effectiveness; communicating; and providing remediation where required. It concerns actual and potential impacts connected with defined chains of activities, not every commercial relationship in the same way. Because the act has changed and Member States transpose directives, organizations must verify the consolidated text, national law, scope, timing, and sector-specific rules.
Why it matters
CSDDD moves sustainability due diligence beyond voluntary commitments for covered companies and connects governance systems with impacts across operations and business relationships. It can also affect suppliers asked for information or corrective action. A supplier code of conduct may communicate expectations, but a document alone is insufficient: effective due diligence is risk-based, ongoing, proportionate, documented, and connected to prevention, mitigation, monitoring, communication, and remediation.
Example
A potentially covered manufacturer first confirms scope and timing under the consolidated directive and applicable national law. It then maps higher-risk parts of its chain of activities, integrates responsibilities, assesses impacts, prioritizes where allowed, implements prevention and corrective measures, operates notification and complaints channels, monitors effectiveness, and documents remediation decisions.
How it differs
Supply chain due diligence
Supply chain due diligence is a general ongoing process for identifying and addressing impacts in supply relationships; CSDDD is a specific EU legal instrument that imposes defined duties on companies within its scope.
References
Current status
- As of
- Issuer
- European Union
- Jurisdiction
- European Union
- Instrument or version
- Directive (EU) 2024/1760, consolidated version of 18 March 2026
- Status
- Directive (EU) 2024/1760 is in force and has been changed; EUR-Lex identifies 18 March 2026 as the current consolidated version.
Applicability: Coverage, obligations, timing, supervision, and remedies must be checked against the current consolidated directive and the relevant national transposition. This dictionary entry is a general explanation and not legal advice.