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EU CSDDD explained

The EU Corporate Sustainability Due Diligence Directive (CSDDD or CS3D) is set to revolutionise corporate responsibility in global supply chains and require companies to adopt climate transition plans.

In-scope companies will be required 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 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, in-scope companies must adopt and implement climate transition plans and set climate targets in line with the Paris Agreement. In case of infringements, companies may be held liable and face significant financial penalties.

Member States have until 26 July 2026 to transpose the Directive into national law. It will then apply on a phased basis to in-scope companies from 26 July 2027. In view of the new, far-reaching obligations and risks under the CSDDD and their interplay with reporting obligations under the CSRD, companies are well-advised to plan ahead.

CSDDD explained podcast series

To aid in your planning, our podcast series explores various aspects of the Corporate Sustainability Due Diligence Directive (CSDDD) in bite-sized episodes. We cover its scope and timing, application to the financial sector, penalties and enforcement, transition plans, due diligence requirements, and comparisons with the Corporate Sustainability Reporting Directive (CSRD), among other topics.

Episode 1

EU CSDDD explained: What is this all about

Speakers: Rachel Barrett & Julia Grothaus

In this episode, partners Rachel Barrett and Julia Grothaus give an overview of the CSDDD, including why it’s a big deal and why it is advisable for businesses to start thinking about it now.

 

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Episode 2

EU CSDDD explained: Scope and timing

Speakers: James Marlow & Tom Cobbaert

In this episode, managing associates James Marlow and Tom Cobbaert explain who the CSDDD applies to and at which level obligations apply and when.

 

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Episode 3

EU CSDDD explained: How the CSDDD applies to the financial sector

Speakers: Terry YiangouIyes IgiehonElliot Jack & Elizabeth Webb

In this episode, managing associates Terry Yiangou and Iyes Igiehon and associates Elliot Jack and Elizabeth Webb explore what the CSDDD means for the financial sector, including scoping and application as well as transition plan requirements.

 

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Episode 4

EU CSDDD explained: CSDDD and transition plans

Speakers: Kim Rybarczyk & Xu Wang

In this episode, counsel Kim Rybarczyk and managing associate Xu Wang explain why the CSDDD’s transition plan requirement is significant, including the detail behind what transition plans should contain.

 

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Episode 5

EU CSDDD explained: How the CSDDD compares with the CSRD 

Speakers: Tom Cobbaert and Claudia Harper

In this episode, managing associate Tom Cobbaert and associate Claudia Harper discuss the intersection between the EU Corporate Sustainability Reporting Directive (CSRD) and the EU Corporate Sustainability Due Diligence Directive (CSDDD).

 

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Episode 6

EU CSDDD explained: due diligence requirements

Speakers: Guillaume Croisant and Aileen Buchanan

In this episode, counsel Guillaume Croisant and Aileen Buchanan provide an overview of the environmental and human rights due diligence obligations under the CSDDD and the impacts on business partners.

 

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Episode 7

EU CSDDD explained: what the due diligence requirements mean in practice 

Speakers: Guillaume Crosiant and James Marlow

In this episode, counsel Guillaume Croisant and manging associate James Marlow discuss some of the key concepts behind the due diligence obligations, including practical tips on where businesses should begin, as well as next steps in the run up to July 2027, when the CSDDD will first apply to the initial group of companies within its scope.

 

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Episode 8

EU CSDDD explained: enforcement and penalties

Speakers: Guillaume Crosiant and Kathrin Bauwens

In this episode, counsel Guillaume Croisant and Kathrin Bauwens discuss the public and private enforcement mechanisms of the CSDDD and the significant penalties companies may face for non-compliance.

 

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Episode 9

EU CSDDD explained: How does it impact non-EU companies

Speakers: James Marlow , Liz Raulston and Gilly Hutchinson

In this episode, Managing Associate James Marlow in the London ESG team speaks with Senior Associate Liz Raulston in the US team and Knowledge Lawyer & Head of ESG Regional Development for Asia, Gilly Hutchinson, about the EU CSDDD’s impact on businesses outside the EU – with a particular focus on the implications for businesses in the US and Asia, as well as the UK's position.

 

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Episode 10

EU CSDDD explained: Interaction with the German Supply Chain Act

Speakers: Julia Grothaus and Kathrin Bauwens

In this episode, Partner Julia Grothaus and Managing Associate Kathrin Bauwens in our German team discuss the similarities and differences between the CSDDD and the German Supply Chain Act, as well as any lessons we can draw from the German law for the upcoming CSDDD implementation.

 

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Episode 11

EU CSDDD explained: Lessons from the French Duty of Vigilance law

Speakers: Claudia Cavicchioli

In this episode, Claudia Cavicchioli, Counsel in the Paris team, explores the similarities between the French Duty of Vigilance Law and the CSDDD, including what can be learnt from French law, and how the CSDDD might impact the French legal landscape.

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For further details on the CSDDD and to view our broader business and human rights capabilities, visit our Business & Human Rights webpage
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