While the CSRD handles the paperwork, the CSDDD is the one making sure companies actually follow through on it. It’s like the boss holding them accountable. And we are glad to give you an update on the current status regarding that CSDDD.

What is the CSDDD?

The Corporate Sustainability Due Diligence Directive (CSDDD) is European legislation aimed at promoting sustainability in the European economy. It holds companies accountable for their impact on both their own operations and their supply chains.

Under the CSDDD, business leaders must conduct ‘due diligence.’ This means that they must thoroughly research what the impact of their company is and take action based on those findings. This means that companies are required to actually do something with the reports they prepare for the CSRD.

What does the CSDDD require?

The specific requirements of the CSDDD are as follows:

  • Integration of due diligence on human rights and environmental factors into business policies.
  • Establishment of processes to identify potential impacts on human rights and the environment, both within their own
    operations and in the supply chain.
  • Preventing or reducing potential negative effects.
  • Monitoring the implementation and results of due diligence practices and evaluating their effectiveness at least once a year.
  • Publishing an annual statement on the website communicating the due diligence measures taken in the past year.
  • Establishing and maintaining a complaints procedure.

Timeline of the CSDDD

The implementation of the CSDDD according to the recent information according to this timeline:

  1. 2024: The CSDDD becomes law at the European level.
  2. 2026: European countries adopt the law into their national legislation.
  3. 2027: Group 1 must comply with all requirements: European companies with more than 1000 employees.
  4. 2028: Group 2 must comply: European companies with more than 500 employees and a turnover of more than 150 million euros.
  5. 2029: Group 3 must comply: European companies in ‘high-impact’ sectors with more than 250 employees and a turnover of more than 40 million euros.

After 2030, it is highly likely that non-European companies operating in Europe and with a turnover of more than 150 million euros will also have to comply with these guidelines.

SmartTrackers and the CSDDD

The CSDDD imposes a new responsibility on European companies to take their sustainability impact seriously. Through due diligence and reporting obligations, companies must actively work to reduce their negative impact on people and the environment. Being aware of these changes is essential for preparing on time to meet the new requirements.

We are, of course, keeping an eye on developments in the field of the CSDDD. Are there any questions you’d like to ask? Or do you perhaps want to know how our software can help you with this CSDDD or the CSRD? Then be sure to request a demo, because we are happy to answer all your questions.

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