Corporate Sustainability Due Diligence Directive (CSDDD)

What is the CSDDD?

The Corporate Sustainability Due Diligence Directive (CSDDD) is EU-wide legislation requiring large companies to identify, prevent and address adverse human rights and environmental impacts throughout their value chains. Unlike voluntary frameworks, it creates binding legal obligations with enforcement mechanisms and civil liability.

EU Member States must transpose the Directive into national law by July 2026. Companies with 5,000+ employees and EUR 1.5 billion+ turnover are first in scope. By 2029, thresholds drop to 1,000 employees and EUR 450 million turnover.

Implications for your supply chain

While directly targeting large companies, the CSDDD cascades through supply chains. SMEs that are suppliers to larger businesses will need to demonstrate compliance — providing transparency on environmental and human rights practices throughout the value chain.

Key requirements include: mandatory human rights and environmental due diligence across the full value chain; a complaints mechanism for affected stakeholders; climate transition plans aligned with the Paris Agreement; and civil liability for companies that fail to prevent harm.

How SupplyCanvas helps

Achieve full transparency and control over your supply chains with SupplyCanvas. Map suppliers, collect due diligence data, and generate audit-ready documentation — all without disclosing your suppliers to third parties.