The minute
- The CSDDD requires large companies to identify, prevent and remedy negative human rights and environmental impacts across the entire value chain, not just their own operations
- Under Omnibus I, the compliance deadline for due diligence requirements was pushed from July 2027 to July 2029
- Unlike the CSRD (which is about reporting), the CSDDD demands real action and carries exposure to civil liability for failing to act
Why it matters: Non-EU suppliers enter this conversation through contracts, not law: a European company under the CSDDD will demand proof of compliance from whoever sells to it, even without direct jurisdiction.
What actually changes under the CSDDD
The directive requires a company to map direct and indirect suppliers, identify risk of forced labor, environmental damage and other violations, and have a remediation plan, not just a report.
Post-Omnibus deadlines
The compliance deadline moved from 26 July 2027 to 26 July 2029. Member states have until 26 July 2028 to transpose the directive into national law.
Civil liability exposure
Unlike purely reporting-based rules, the CSDDD opens the door to civil action for damage caused by a failure of due diligence, which changes the legal risk calculation for companies in the chain.
How a non-EU company gets pulled in
Suppliers to European companies under the CSDDD tend to receive audit requests and compliance questionnaires, even without being directly subject to European law.
Frequently asked questions
Are CSDDD and CSRD the same thing?
No, the CSRD is about reporting sustainability data and the CSDDD is about acting across the value chain to prevent and fix harm.
Can a non-EU company be sued under the CSDDD?
Only directly if it’s in EU scope, but it can face contractual consequences as a supplier to a company that is.
What is human rights due diligence?
The process of identifying, preventing and mitigating the risk of human rights violations across the supply chain.
Read next: what the CSDDD is, in a quick definition.
Read next: the complete CSRD guide.