What is the Corporate Sustainability Due Diligence Directive (CSDDD)?

Dutch term: CSDDD | Legal basis: Directive (EU) 2024/1760

The Corporate Sustainability Due Diligence Directive (CSDDD, Directive (EU) 2024/1760) requires large companies operating in the EU to identify, prevent, mitigate and account for adverse human rights and environmental impacts in their own operations, their subsidiaries and their value chains. Member states must transpose the directive by 26 July 2026.

The directive applies to EU companies with more than 1,000 employees and a net worldwide turnover above 450 million euro, and to non-EU companies with equivalent EU turnover. Companies must establish and implement a due diligence policy, integrate it into corporate strategy, engage with stakeholders, establish a complaints mechanism, and report publicly. Civil liability for failure to exercise adequate due diligence is established.

Why it matters for international businesses

For international businesses with Dutch operations or significant EU turnover, CSDDD compliance will require contractual due diligence cascading through the supply chain, including sustainability clauses, audit rights and remediation provisions in supply agreements.