CSDDD
Directive (EU) 2024/1760 — Corporate Sustainability Due Diligence, amended by Directive (EU) 2026/470
Topic : Supply chain due diligence · Level : Regional
Today
Omnibus I narrowed scope to >5,000 staff and >€1.5bn. Transposition 26 Jul 2028; obligations apply from 26 Jul 2029.
Summary
The CSDDD requires very large companies to identify and address human rights and environmental harm in their chains of activities. After Omnibus I it covers firms with over 5,000 staff and €1.5bn turnover, from July 2029.
Who is concerned
- Turnover
- > €1.5bn net worldwide turnover (non-EU: >€1.5bn in EU)
- Employees
- > 5,000 employees (EU companies)
- Listed company
- cotées et non cotées
- Sectors
- All sectors
- Triggering activities
- EU company above both thresholds
- Non-EU company with >€1.5bn EU turnover
- Ultimate parent of a group meeting thresholds
- Extraterritorial reach
- Yes
Non-EU firms with >€1.5bn EU turnover are in scope; in-scope buyers must address risks at business partners worldwide.
- Examples
- EU car maker, 20,000 staff
- US consumer group with €3bn EU sales
- EU luxury group sourcing from China
What the law requires
- Identify and assess adverse human rights and environmental impacts, risk-based
- Prevent, mitigate and remediate impacts, including through contract clauses
- Set up a complaints mechanism and engage stakeholders
- Monitor effectiveness and report annually
Penalties
Fines set by Member States, capped at 3% of net worldwide turnover. Civil liability under national law.
What this changes for a supplier in China
Large EU buyers will demand codes of conduct, audits and remediation plans from Chinese suppliers, focused on high-risk areas. Pressure grows from 2028-2029.
Expected evidence
- Signed supplier code of conduct
- Social audit report and corrective action plan
- Sub-supplier and raw material origin map
Tiers : Tier 1-N