Corporate Sustainability Due Diligence Directive (CSDDD)

Who does the CSDDD apply to?

Currently, the CSDDD only applies to approximately 7,000 large companies that meet the following criteria:

• EU limited liability companies and partnerships that have:
  
  • 1,000+ employees
  • > €450 million net revenue globally
• Non-EU companies that have:
  
  • > €450 million net revenue in the EU

Like the CSRD, the reporting under the CSDDD will be simplified under the ‘Simplification Omnibus Package’ and the VSME will protect small and mid-sized companies (< 1000 employees) against the so-called trickling down of requirements. However, the CSDDD will still require companies to identify and address potential adverse human rights and environmental impacts of activities throughout their value chain, and put a transition plan in place for climate mitigation. The first reporting will likely be in 2029.

What is the impact of the CSDDD on LSPs and carriers?

Only the larger LSPs and carriers will be required to report under CSDDD, but others may also be indirectly affected if their clients fall under the CSDDD criteria. While the VSME helps limit the requirements for SMEs, it’s better to start getting prepared now to avoid a last-minute scramble for information in a few years when the first reporting window opens.