CSDDD

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Sustainability throughout the entire value chain has drawn great attention from politicians, investors, consumers, and other stakeholders, both when it comes to environmental matters and human rights.

Building upon the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles for Business and Human Rights, the Corporate Sustainability Due Diligence Directive (CSDDD) establishes a rigorous standard for human rights and environmental due diligence as well as climate transition plans for companies operating in the EU. Despite a challenging negotiation process, the CSDDD was adopted by the EU in 2024, and member states will have two years to incorporate the directive into national legislation.

What is CSDDD?

The primary goal of the CSDDD is to direct that companies operating within the EU practice human rights and environmental due diligence and conduct a climate transition plan throughout their supply chain, thereby mitigate sustainability related negative impacts and risks. By implementing a unified approach across the EU, the directive aims to provide businesses, customers, and victims of human rights abuses with greater clarity regarding expected behavior and potential liability.

To comply with the directive, companies must integrate responsible business practices into their daily operations and commit to identifying actual and potential negative effects, preventing and minimizing their impact, monitoring their effectiveness in doing so, and communicating their efforts through the CSRD. This due diligence is required across companies’ operations, subsidiaries, and business partners, taking a supply chain approach, regardless of where the impacts occur.

We can assist your organization in helping to understand the impact of the CSDDD on your operations, ensure compliance, and operationalize the requirements.

Christian Møllegaard

Partner, Audit

KPMG in Denmark

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We can help you with

Legislation scanning and understanding the impact of non-compliance.
Human rights and environmental risk assessment across the value chain and climate transition plan.
Maturity assessment of the current state of your companies’ due diligence processes and gap analysis.

Prioritized compliance roadmap and design of the future operating model, which includes governance and the description of roles and responsibilities.
Update and design of human rights and environmental policy frameworks and strategies.
Select tools and technologies to enhance your risk management and compliance efforts.
Document and prepare for reporting on due diligence through the CSRD.