The CSDDD (Corporate Sustainability Due Diligence Directive) is the European directive that requires large companies to identify, prevent and address risks to people and the environment in their value chain. Where the CSRD is about reporting on sustainability, the CSDDD is about acting: applying due diligence to the chain, from human rights to environmental harm. The two directives complement each other. With the Omnibus I package, in force since March 2026, the CSDDD has been narrowed considerably: the directive now focuses on the largest companies. National transposition must be complete by 2028 at the latest, with application from 2029.
What does due diligence involve?
- Identify — map risks to people and the environment in own operations and the chain.
- Prevent and mitigate — take measures to stop or reduce negative effects.
- Monitor — track whether the measures are working.
- Communicate — be transparent about approach and progress.
CSDDD versus CSRD
The CSRD requires reporting on sustainability impact; the CSDDD requires actually addressing risks in the chain. Reporting and due diligence interlock: what an organisation identifies as a material risk also calls for action.
The role of the chain
As with scope 3, the centre of gravity of the CSDDD lies in the chain: with suppliers and further up the production chain. A double materiality analysis helps to determine which risks and impacts weigh most heavily and therefore deserve priority.
From obligation to strategy
Due diligence in the chain is more than an obligation: it reduces risk and strengthens an organisation’s position. The step from inventory to action calls for a strategy and action plan, substantiated with data. See Baseline Compliance.
How New Economy substantiates
New Economy maps chain and impact data, so that risks can be prioritised and addressed on a substantiated basis. This keeps due diligence from becoming a paper exercise and turns it into targeted improvement. See Baseline Compliance.
Frequently asked questions about the CSDDD
CSDDD stands for Corporate Sustainability Due Diligence Directive: the European directive that requires large companies to address risks to people and the environment in their chain.
The CSRD is about reporting on sustainability; the CSDDD is about acting: identifying, preventing and addressing risks in the chain. They complement each other.
Appropriate care: identifying, preventing and mitigating risks to people and the environment in the chain, monitoring them and communicating about them.
Since the Omnibus I package (in force March 2026), the directive focuses on the largest companies, with substantially higher thresholds than the original version. National transposition follows by 2028 at the latest, with application from 2029.
By mapping the chain, prioritising risks with a materiality analysis and taking the step from inventory to a substantiated action plan.
To work on due diligence in the chain, see Baseline Compliance or Contact to explore the options.