Corporate Sustainability Due Diligence Directive (CSDDD)
Corporate Sustainability Due Diligence Directive (CSDDD) is Directive (EU) 2024/1760, in force since July 25, 2024 and amended by the 2026 Omnibus I directive, that requires very large companies to identify and address human rights and environmental harms in their chains of activities.
What it requires
After Omnibus I, it covers EU companies with more than 5,000 employees and EUR 1.5 billion net worldwide turnover, and non-EU companies with EUR 1.5 billion turnover in the EU. Member states must transpose it by July 26, 2028, and companies must comply from July 26, 2029, using a risk-based approach focused on likely adverse impacts. The climate transition plan obligation was removed, and fines are capped at 3 percent of net worldwide turnover.
Why it matters
Although Omnibus I cut the number of companies in scope by an estimated 70 percent, those remaining include major retailers and brands that will pass due diligence requirements to logistics partners through contracts. A 3PL handling EU distribution for a large apparel group should expect questions on labor conditions, subcontracting and grievance channels. Because the directive applies from 2029, operators have time to build documentation, but large customers may ask for evidence earlier as they prepare.
Related laws
- German Supply Chain Due Diligence Act (LkSG)2021, effective 2023 · German law on supply chain human rights due diligence
- EU Forced Labour Regulation2024, applies from December 2027 · EU ban on products made with forced labour
- EU Deforestation Regulation (EUDR)2023, applies from December 2026 · EU ban on products linked to deforestation
Sources
Not legal advice.