EU adopts the Corporate Sustainability Due Diligence Directive

The Council of the EU adopted the Corporate Sustainability Due Diligence Directive (CSDDD) on 24 May 2024, completing the process after the European Parliament's approval on 24 April. It was published in the Official Journal on 5 July 2024 as Directive (EU) 2024/1760.

What it required, as adopted

• EU companies with more than 1,000 employees and €450 million worldwide turnover, and non-EU companies with €450 million turnover in the EU, must carry out risk-based human rights and environmental due diligence across their own operations, subsidiaries and chains of activities.
• Companies must adopt and put into effect a climate transition plan aligned with the Paris Agreement.
• National supervisors could impose penalties, and companies could face civil liability for harm caused by failures.
• Application was phased from 2027 to 2029 by company size. Member states had until July 2026 to transpose it.

Who is affected

Large groups and their boards. Smaller companies are drawn in as suppliers in in-scope companies' chains.

Later developments

The 'stop-the-clock' directive of April 2025 delayed transposition and application by a year. Omnibus I, adopted by the Council on 24 February 2026, then cut the scope to companies with more than 5,000 employees and €1.5 billion turnover, with compliance from 26 July 2029. The thresholds above are no longer the operative scope.

Sources

• European Parliament: MEPs set to greenlight new EU due diligence rules for companies (April 2024)
• Freshfields: Sustainable global supply chains, EU's CSDDD finally adopted by Council
• A&O Shearman: The EU Corporate Sustainability Due Diligence Directive is final
• Clifford Chance: Omnibus I, the European Union concludes CSDDD and CSRD reforms (February 2026)