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EU: CSDDD published in the Official Journal

The Corporate Sustainability Due Diligence Directive (CSDDD or CS3D) was published in the Official Journal of the EU on 5 July 2024 – see here

Scope and application

It will come into force on 25 July 2024. Member states will have until 26 July 2026 to transpose the CSDDD into their national laws. The CSDDD will apply on a phased basis for in-scope companies as follows: 

Transition periodIn-scope EU companiesIn-scope non-EU companies
3 years (26 July 2027)More than 5 000 employees and EUR 1 500 000 000 worldwide net turnoverMore than EUR 1 500 000 000 net turnover in the EU
4 years (26 July 2028)More than 3 000 employees and EUR 900 000 000 worldwide net turnoverMore than EUR 900 000 000 net turnover in the EU
5 years (26 July 2029)All other in-scope companiesAll other in-scope companies

Summary of requirements

Under the new rules, in-scope companies will be subject to far-reaching obligations to establish and implement processes to identify and take action in relation to the adverse human rights and environmental impacts of their operations, as well as those in parts of their value chains. The regime can apply outside the EU, both in terms of the companies it brings into scope, the diligence that needs to be undertaken worldwide, and the indirect effects the new rules will have as they are cascaded up and down value chains. 

In addition, for the first time, in-scope companies must adopt and implement climate transition plans and set climate targets in line with the Paris Agreement in a bid to set the course for a move to a lower carbon economy. 

To ensure compliance with its provisions, the CSDDD relies on public and private enforcement.

For more information on the CSDDD, explore our related content:


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