Strategic Focus: Understanding The EU’s Corporate Sustainability Due Diligence Directive (CSDDD)

Report

Corporate Sustainability Leaders

Priyanka Bawa

Kim Knickle

06 Dec, 2024

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Executive Summary

On July 25, 2024, the European Union’s Corporate Sustainability Due Diligence Directive (CSDDD) entered into force, ushering in an era of enhanced corporate duty to ensure long-term societal and environmental value through a firm’s operations and value chains. This report provides an overview of the directive alongside actions that organizations can undertake to prepare themselves for eventual compliance from 2027 onwards. C-Suite executives should use this report to inform their due diligence action, as part of their sustainability roadmaps, over the next two years.

Table of contents

Summary for decision-makers
The CSDDD advances the EU’s sustainability agenda by merging due diligence with environmental and social considerations
The CSDDD mandates firms know, show and improve their sustainability impacts
The CSDDD raises the bar for ESG and sustainability regulations across the world
Firms must start preparing now for eventual compliance with the CSDDD
Robust due diligence mechanisms will hold firms in good stead
Firms can leverage digital tools and external expertise to boost CSDDD preparedness

Table of figures

Figure 1. Application of the CSDDD
Figure 2. Buckets of human rights legislation
Figure 3. An overview of EU regulations
Figure 4. The CSDDD’s processes for businesses

Organisations mentioned

Achilles, Avetta, Bureau Veritas, DEKRA, Deloitte, EcoVadis, European Commission, European Parliament , Fair Wear Foundation, Hillenbrand, IntegrityNext, Intertek, Organisation for Economic Co-operation and Development (OECD), SGS, Sphera, UL Solutions, UN, World Benchmarking Alliance

About the Authors

Priyanka Bawa

Senior Analyst

Priyanka is a Senior Analyst at Verdantix, where she leads research to enable sustainability leaders and services firms to analyse shifting market dynamics and evaluate innova...

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Kim Knickle

Research Director

Kim Knickle is a Research Director at Verdantix, bringing more than two decades of analyst experience to the evolving world of sustainability. Her current research spans ESG a...

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