EU Adopts Corporate Sustainability Due Diligence Directive (CSDDD)

The European Union formally adopted the Corporate Sustainability Due Diligence Directive (CSDDD), embedding supply chain due diligence into EU law. The directive requires the largest companies (over 5,000 employees, €1.5 billion turnover) to identify, prevent, and mitigate adverse human rights and environmental impacts across their value chains. While the scope was narrowed during negotiations, the directive represents a landmark shift from voluntary ESG reporting to enforceable supply chain obligations, with duties starting July 2029.

• Mandatory supply chain due diligence for human rights and environment
• Applies to companies with 5,000+ employees and €1.5B+ turnover
• Enforceable obligations replacing voluntary ESG commitments
• Civil liability provisions for failure to conduct due diligence