CSDDD
A proactive approach to corporate sustainability due diligence
Navigating evolving corporate sustainability regulations together 
LRQA brings together decades of regulatory and sector-specific expertise, data-driven insight and on-the-ground presence to help you navigate risks and opportunities, across your entire value chain.
We have human rights and climate risk experts across the globe coupled with deep domain expertise across both existing and forthcoming legislation such as the EU Corporate Sustainability Due Diligence Directive (CSDDD).
We understand the nuances and overlaps between different regulations, allowing us to take a proactive and pragmatic approach that meets all requirements from the outset, including Corporate Sustainability Reporting Directive (CSRD) and CSDDD reporting.
We deliver comprehensive end-to-end support addressing every facet of ESG due diligence, from setting up processes to delivering effective implementation through tailored programmes, audits and investigations.
Our approach is underpinned by data-driven insight derived from LRQA’s supply chain due diligence software EiQ. EiQ allows clients to achieve near real-time monitoring of their supply chain performance and ESG risks.
Our solutions don’t just stop at implementation, we foster long term relationships with our clients, delivering year-on-year support to measure and monitor impact and effectiveness.
Partner with us and let’s work together to identify, manage, mitigate and remediate your ESG risk.
What is the CSDDD?
The EU Corporate Sustainability Due Diligence (CSDDD) lays down mandatory due diligence requirements which companies must implement regarding the environmental and human rights impacts along their chain of activities.
Under the CSDDD, companies need to exercise human rights and environmental due diligence and publicly communicate on it – and they need to do so in accordance with the Corporate Sustainability Reporting Directive (CSRD), if they are in scope.
Companies will also have to adopt a plan to ensure that their business strategy is compatible with the Paris Agreement, aimed at limiting global warming to 1.5°C. We partner with you to diagnose, develop and design strategies. We work with you to implement a due diligence system aligned to the directives requirements.
CSDDD requirements overview
Who is impacted?
The directive was published in the European Union Official Journal on 5 July 2024 and entered into force on 25 July 2024. Member States have until 26 July 2026 to transpose the directive into national law.
The directive will apply to companies which fulfil certain conditions:
Companies within the EU with more than worldwide turnover of EUR 450 million and 1,000 employees.
EU companies that have franchising or licensing agreements with a return of more than EUR 22.5 million and a net worldwide turnover of more than EUR 80 million.
Companies outside the EU that generated a net turnover of EUR 450M in the EU.
From 2027, the rules will start to apply to companies with a gradual phase-in approach.
Key proposed changes under the Omnibus proposal
The Omnibus proposal introduces adjustments to the Corporate Sustainability Due Diligence Directive (CSDDD), aiming to streamline compliance while maintaining due diligence obligations. See below for a highlight of the proposed changes, including shifts in scope, compliance timelines and risk management expectations.
Companies to demonstrate compliance starting in 2028
Companies will need to start meeting the rules from July 2028, after EU countries turn the Directive into national law. EU guidelines will be published by July 2026 to help with implementation.
Change in scope
Covers own operations, subsidiaries, tier 1 suppliers. Extends beyond tier 1 only if adverse impact risk is plausibly known.
Changes to due diligence obligations
Assess and monitor partners every 5 years or ad hoc. Ongoing checks must remain effective. Stakeholder input limited in scope.
Changes to business relationships and liability
Termination no longer required—suspension and remediation preferred. Fewer supplier info requests. Civil liability now decided by national law.
Amid the ongoing developments concerning the EU Omnibus legislation and an evolving regulatory landscape, our experts provide clarity and guidance, supporting your business in meeting compliance obligations, building resilience and preparing for future changes.
View our Omnibus Proposals essential summary
Frequently asked questions
What is the EU Corporate Sustainability Due Diligence Directive (CSDDD)?
The CSDDD is an EU directive requiring companies to manage environmental and human rights risks within their operations and supply chains. Companies must integrate due diligence into their business strategies and align with the Corporate Sustainability Reporting Directive (CSRD).
Who does the CSDDD apply to?
The CSDDD applies to large EU and non-EU companies operating within the EU.
For EU companies: Companies within the EU with more than worldwide turnover of EUR 450 million and 1,000 employees.
EU companies that have franchising or licensing agreements with a return of more than EUR 22.5 million and a net worldwide turnover of more than EUR 80 million.
For Non-EU companies: Companies outside the EU that generated a net turnover of EUR 450M in the EU.
What are the main requirements for companies under CSDDD?
The directive requires companies to:
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Integrate due diligence into company policies and risk management systems
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Identify and assess actual or potential adverse environmental and human rights impacts
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Prevent, mitigate, and remediate potential and actual adverse environmental and human rights impacts
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Carry out meaningful stakeholder engagement
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Establish an appropriate notification mechanism and complaint procedure/s
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Monitor the effectiveness of the company’s due diligence policies
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Establish a climate plan, aligned to Paris Agreement targets
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Publicly communicate in accordance with CSRD
How does the CSDDD differ from other ESG regulations?
While other regulations like the Corporate Sustainability Reporting Directive (CSRD) focus on disclosure, the CSDDD requires companies to take concrete actions to prevent and mitigate harm. The directive emphasises accountability, mandating active steps to address risks and setting legal consequences for non-compliance.
How will CSDDD affect supply chain management?
CSDDD requires businesses to assess the entire supply chain for risks, including indirect suppliers. Companies must demonstrate active measures to address human rights and environmental impacts, shifting supply chain management towards greater transparency and proactive engagement with suppliers to uphold sustainable practices.
What is the timeline for the CSDDD?
Compliance begins in 2027, with a phased rollout based on company size.
How can CSDDD compliance enhance business outcomes?
Beyond avoiding penalties, compliance can strengthen stakeholder trust, improve brand reputation and create competitive advantages through responsible and sustainable practices.
How can LRQA help you achieve compliance with the CSDDD?
LRQA helps organisations achieve compliance with the EU Corporate Sustainability Due Diligence Directive (CSDDD) by offering tailored, end-to-end support that addresses every stage of the directive’s requirements. Our approach combines deep ESG (environmental, social, and governance) expertise with practical solutions to empower businesses to meet regulatory obligations effectively.
How we can help
We provide a full suite of solutions to support you with every aspect of ESG due diligence.
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ESG Advisory Services
Identify and reduce risk in your operations and value chains
ESG Advisory Services -
Sostenibilità e Approvvigionamento Responsabile
Migliorare le credenziali ESG e adottare le migliori pratiche
Sostenibilità e Approvvigionamento Responsabile -
Dati e Strumenti Analitici
Il software di gestione della catena di fornitura EiQ di LRQA vi aiuta a monitorare e gestire i rischi ESG della vostra catena di fornitura in tempo reale.
EiQ
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Guardate il nostro webinar Navigating EU CSDDD: Key expectations and preparation steps for companies, ascoltate i nostri esperti CSDDD e scoprite come prepararvi e come sfruttare i meccanismi di conformità esistenti.
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Leggete la nostra guida 2024 sui requisiti di due diligence ESG della supply chain, sviluppata per aiutarvi a comprendere le normative regionali, i requisiti specifici di conformità e a prepararvi ai cambiamenti futuri.
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We provide comprehensive end-to-end support to help organisations meet the requirements of the Corporate Sustainability Reporting Directive (CSRD). Our end-to-end approach supports every stage of your CSRD journey—from understanding new requirements to delivering actionable insights and verified reporting, to closing your performance gaps. Our approach doesn’t only address compliance but also enhances strategic resilience and reputational value, enabling businesses to unlock sustainable growth. Visit our CSRD page to learn more about how we can empower you to meet evolving ESG reporting requirements.
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Perché lavorare con noi?
Con oltre 800 esperti ESG a livello globale, lavoriamo al vostro fianco per creare soluzioni che affrontino le sfide uniche della vostra azienda. Abbiamo una profonda esperienza nella legislazione ESG esistente e futura e ci affidiamo ad alcuni dei marchi più noti al mondo. Collaboriamo con voi per comprendere le vostre sfide uniche, costruendo un approccio proattivo e pragmatico alla due diligence ESG.
Capacità Globale
Le nostre soluzioni sono fornite da un team globale di specialisti in ESG, supply chain, cybersecurity e compliance. L'esperienza e il raggio d'azione ci consentono di comprendere i rischi e le opportunità che la vostra azienda si trova ad affrontare oggi, ovunque voi operiate.
Collaboriamo con voi
Per comprendere appieno le sfide che dovete affrontare e individuare le soluzioni giuste, formiamo partnership profonde con i nostri clienti che ci consentono di ottenere una comprensione completa dei loro rischi e opportunità aziendali.
Una storia di primati
Siamo stati i primi a ricevere l'accreditamento per fornire servizi di certificazione per una serie di standard di qualità, ambientali e di salute e sicurezza in tutto il mondo. E continuiamo a essere determinanti nello sviluppo di una serie di standard e schemi legati all'ESG.
Approfondimenti basati sui dati
Investiamo in piattaforme digitali che vi offrono una visione approfondita delle vostre operazioni. La nostra intelligenza umana è arricchita da ampie capacità analitiche che possono essere applicate per affrontare i rischi attuali e futuri all'interno delle vostre operazioni e della vostra catena di fornitura.
