Overview of the legal framework of the Green Deal

Corporate Sustainability Due Diligence Directive (CSDDD)

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Corporate Sustainability Due Diligence Directive (CSDDD)

The aim is to improve social and ecological standards along global chains of activity, i.e. to respect human rights and protect the environment. Companies should identify, eliminate, mitigate or prevent potential negative impacts on human rights and the environment. To this end, they must fulfil extensive due diligence and documentation obligations and take appropriate measures to remedy any abuses. The guideline applies to both products and services and covers all activities from purchasing to development, production, storage, distribution, transport and waste management.

Objectives:

Compliance with human rights Protection of the environment

Directly affected are companies with:


registered office in the EU

more than 1000 employees

more than 450 million euros in annual global sales
The law provides different transition periods depending on the size of the company:
from 26 July 2027 for companies with
more than 5,000 employees
more than 1.5 billion euros turnover
from 26 July 2028 for companies with
more than 3,000 employees
more than 900 million euros turnover
from 26 July 2028 for companies with
more than 1,000 employees
more than 450 million euros turnover
Companies that are not directly affected by the Directive should also familiarise themselves with the CSDDD in good time, as affected companies pass on the due diligence obligations to companies that are part of their upstream or downstream chain of activities.

Checklist - What needs to be done?

Creation of a due diligence policy with a focus on human rights, labour conditions and the environment for the implementation of due diligence obligations.
Identify the most serious risks as part of a risk-based review to determine when and where they are most likely to occur. Stakeholders (employees, works councils, consumers, NGOs, etc.) are also included in the due diligence process.
Identify the most serious risks as part of a risk-based review to determine when and where they are most likely to occur. Stakeholders (employees, works councils, consumers, NGOs, etc.) are also included in the due diligence process.
Passing on the due diligence obligations to business partners, as required by the due diligence obligations.
Preparation of a report on progress in relation to due diligence obligations.
Creation of a climate transformation plan.

Further information:

[EUR Lex] EU Corporate Sustainability Due Diligence Directive