CSDDD: CORPORATE SUSTAINABILITY DUE DILIGENCE DIRECTIVE
Meet the requirements of the Corporate Sustainability Due Diligence Directive (CSDDD) with our customized system
THE CORPORATE SUSTAINABILITY DUE DILIGENCE DIRECTIVE
A Milestone for Corporate Responsibility and Sustainability in the EU
The CSDDD (Corporate Sustainability Due Diligence Directive) is an EU directive that obliges large companies to identify, prevent and remedy human rights and environmental risks across their entire value chain. It establishes a unified legal framework for due diligence, harmonizes competitive conditions across the EU market, and makes corporate responsibility for global supply chains legally binding.
The directive was adopted in June 2024 and revised by the EU Omnibus Package (in force since March 2026). In its current form, it applies to companies with more than 5,000 employees and an annual turnover of over EUR 1.5 billion.
SIMPLE COMPLIANCE WITH CSDDD
Core Elements of the CSDDD Module
Compliance Solutions’ CSDDD module can be implemented into your system as an extension of the Supply Chain Compliance Software system, providing a structured approach to compliance and ensuring organizational sustainability. Your organization can achieve the following benefits:
Simple implementation
of the EU CSDDD
Legally compliant fulfillment
of all requirements
New workflow of the CS3D system
AI-supported,
automated,
and resource-saving
Risk management
and risk analysis
Simple implementation
of the EU CSDDD
Fulfillment
of all requirements
Fast imple-mentation of the LKSG software
AI-supported,
automated,
and resource-saving
Risk management
and risk analysis
THE NEW WORKFLOW OF THE SUPPLY CHAIN COMPLIANCE SYSTEM
The CSDDD Module and your Supply Chain Compliance System
Compliance Solutions offers a workflow-driven, fully risk-based solution for supply chain compliance. This includes:
- An automated, AI-powered risk calculation that provides accurate data
- A comprehensive screening of supply chain and corruption-related issues
Furthermore, the Corporate Sustainability Due Diligence Directive module is seamlessly integrated into the existing workflow to ensure thorough enforcement of these new standards. This is made possible by Compliance Solutions’ dynamic systems, which can be customized for every need. With Compliance Solutions’ supply chain compliance software, customers can remain safe and compliant with the CS3D.
CSDDD and Supply Chain Compliance System - a comparison
The CS3D directive applies EU-wide and thus supplements the existing supply chain regulations of countries that are already taking part. In comparison to a supply chain compliance system, the CSDDD places greater emphasis on social and ecological responsibility along the entire value chain. As of current law, due diligence obligations focus on direct business partners. The originally envisaged harmonized civil liability rules and the obligation to terminate business relationships have been removed by the Omnibus Package. In place of termination, a temporary suspension with an improvement plan now applies. The national liability regulations of the respective member states continue to apply.
WHAT TO EXPECT
Timetable and Scope of the Sustainability Directive
June 2024:
CSDDD adopted by the EU Parliament
July 2024:
CSDDD enters into force (original version)
April 2025:
Stop-the-Clock Directive enters into force – transposition deadline postponed by one year
March 2026:
Omnibus Amendment Directive (EU) 2026/470 enters into force with fundamental revision
July 2028:
Transposition deadline for EU Member States
July 2029:
Applicable for companies with >5,000 employees and >EUR 1.5 billion turnover
June 2024:
CSDDD adopted by the EU Parliament
April 2025:
Stop-the-Clock Directive enters into force – transposition deadline postponed by one year
July 2028:
Transposition deadline for EU Member States
Juli 2024:
CSDDD enters into force (original version)
March 2026:
Omnibus Amendment Directive (EU) 2026/470 enters into force with fundamental revision
July 2029:
Applicable for companies with >5,000 employees and >EUR 1.5 billion turnover
THE DIRECTIVE NOW IN FORCE
Key Changes under the Omnibus Package
The following key changes were made to the original CSDDD of 2024:
- Scope limited to companies with >5,000 employees and >EUR 1.5 billion turnover – the original three-tier model has been abolished
- Due diligence obligations focused on direct business partners
- Obligation to terminate business relationships removed. Temporary suspension with improvement plan applies instead
- Review interval for due diligence obligations extended from annually to every five years
DUE DILIGENCE OBLIGATIONS AND SCOP
Scope of Application of the EU Supply Chain Directive
The due diligence obligations at EU level have clear parallels to the Supply Chain Compliance Software system, particularly regarding the catalogue of obligations and the focus on risk prevention and remedial measures. One key requirement is the regular performance of risk analyses.
The directive also considers situations in which negative effects cannot be remedied and stipulates that measures must be applied proportionately and incrementally. Due diligence obligations focus on direct business partners. Indirect partners are only subject to scrutiny where there are concrete, plausible indications of violations.
INITIAL CONSULTATION & PRODUCT DEMONSTRATION
How can we support you?
Are you interested in our CSDDD module or our supply chain compliance system? Please write to us, our compliance experts will be happy to advise you.