Supporting organizations to demonstrate their commitment to responsible business practices by navigating the complexities of CSDDD, identify risks and impacts across their supply chains, make improvements and report transparently.

The Corporate Sustainability Due Diligence Directive (CSDDD) is a European Union regulation that requires large companies to identify, prevent, mitigate, and account for the adverse human rights and environmental impacts of their operations and value chains. CSDDD builds on the EU’s broader sustainability framework, aligning with the principles of sustainability due diligence, human rights protection, and environmental responsibility and ensuring business plans  are in line with the Paris Agreement and CO2 reduction objectives.

Which companies are impacted by the CSDDD?

The CSDDD mandates that businesses take a proactive approach to identify risks and impacts across their supply chains, make improvements, and report transparently on their actions. These obligations will apply to EU-based companies and non-EU companies that meet certain size and turnover thresholds, with compliance expected to start by 2026 and reporting by 2027:

2027

EU-based companies with:
>5,000 employees
Global net turnover exceeding €1.5 billion

Non-EU-based companies with:
Net turnover within the EU exceeding €1.5 billion

2028

EU-based companies with:
>3,000 employees
Global net turnover exceeding €900 million

Non-EU-based companies with:
Net turnover within the EU exceeding €900 million

2029

EU-based companies with:
>1,000 employees
Global net turnover exceeding €450 million

Non-EU-based companies with:
Net turnover within the EU exceeding €450 million

These thresholds must be met in the two consecutive financial years for the CSDDD to apply.

While small and medium-sized enterprises (SMEs) are not directly subject to the CSDDD, they may be indirectly affected through their roles in the value chains of larger companies. 

How can companies prepare for the CSDDD?

Given the phased implementation and the significant obligations imposed by the CSDDD, it’s essential that businesses falling within the scope of CSDDD start preparing early to ensure compliance within the specified timelines and assure they:

  • Integrate due diligence into their policies and procedures and monitor the effectiveness of these measures.
  • Identify and assess actual or potential adverse human rights and environmental impacts, as well as prevent or mitigate them and bring actual impacts to an end.
  • Communicate publicly on their due diligence efforts.

How Intertek can help you prepare for the CSDDD

With years of expertise in sustainability certifications and reporting frameworks, Intertek subject-matter experts offer tailored services to help your business prepare and meet the CSDDD’s requirements:

Intertek Inlight™ program enables organizations to better understand their supply chain risks and protect their brand by utilizing supplier data to support global companies who require trusted information about the capabilities and compliance of their supplier partners to identify ESG risks to their organization. By delivering risk transparency and visibility into the complex supplier network, Inlight facilitates improved supplier engagement processes, responsible sourcing decisions and supply chain  resilience.

We assist you in identifying and assessing risks related to human rights violations, environmental harm, and adverse impacts in your operations and supply chains. Our expert-led assessments and programs help you pinpoint potential areas of concern and develop strategies to address these risks before they become significant issues.

Auditing plays a critical role in identifying risks, gaps, and non-compliance related to human rights and environmental impacts across value chains. However, audits alone are not enough—they must be directly linked to corrective action planning to ensure meaningful improvements. We help businesses develop effective strategies focusing on both short-term corrective actions and long-term sustainability improvements.

A key component of CSDDD compliance is engaging and managing your suppliers to ensure they adhere to responsible practices. We guide you in establishing strong relationships with suppliers, providing training and support to help them meet CSDDD requirements, as well as assist in creating supplier codes of conduct and monitoring their ongoing compliance.

Visit our solutions on Supply Chain Assurance

In addition our experts can conduct full review of our customers’ existing  structure and/or new program objectives to offer Strategic Recommendations supporting the development of a risk-based approach for supplier engagement.

Visit our solutions on Program Advisory and Collaborative Engagement

With our broad experience in the CSRD (Corporate Sustainability Reporting Directive), we offer specialized services in sustainability reporting, enabling your company to comply with CSDDD’s transparency and disclosure requirements. We assist in compiling the necessary reports that detail your due diligence processes, risk assessments, mitigation actions, and overall sustainability performance.

Independent verification is key to ensuring that your due diligence efforts are robust and trustworthy. We provide third-party audits and assessments to validate your compliance with the CSDDD, offering objective evidence of your company’s commitment to addressing human rights and environmental risks in your operations.

To ensure your team is fully prepared to implement the CSDDD’s requirements, we offer tailored training programs. Our training modules cover the key aspects of the directive, from risk management to reporting, ensuring that your staff and suppliers understand their roles in achieving compliance.

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Related Links

Supply Chain Assurance Auditing & Certification
EU Corporate Sustainability Reporting Directive (CSRD) Solutions
CSDDD Solutions
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