Climate Disclosure & Sustainability Laws
Employee threshold for EU companies in scope (post-Omnibus I)
Net turnover threshold triggering CSDDD obligations
Maximum penalty as percentage of global net turnover
Regulation Overview
https://commission.europa.eu/business-economy-euro/doing-business-eu/sustainability-due-diligence-responsible-business/corporate-sustainability-due-diligence_en
The CSDDD is the EU's mandatory human rights and environmental due diligence directive. It requires large companies to identify, prevent, mitigate, and remediate adverse impacts across their own operations, subsidiaries, and business partners' chains of activities—following the six-step OECD Due Diligence Guidance framework. Following the Omnibus I amendments published February 26, 2026, the CSDDD scope is narrowed to EU companies with more than 5,000 employees and €1.5 billion net worldwide turnover. Non-EU companies generating more than €1.5 billion in EU turnover are also in scope. Member States must transpose by July 26, 2028. Companies must comply from July 26, 2029. CSDDD compliance requires supplier-level due diligence evidence—risk assessments, contractual assurances, corrective action plans, and grievance mechanism records—from direct business partners and, where risk indicators exist, from indirect partners. When supervisory authorities investigate, your evidence chain must be complete.
Key Components / Sub-Frameworks
EU companies with 5,000 employees AND €1.5 billion net worldwide turnover\nNon-EU companies generating €1.5 billion net turnover in the EU\nEU/non-EU franchisors and licensors with €75M royalties AND €275M net turnover\nSubsidiaries of in-scope parent companies (obligations may be fulfilled at group level)\nCompanies in the value chain of in-scope entities (indirect compliance pressure)\nCompanies already subject to national due diligence laws (e.g. German LkSG, French Loi de Vigilance)
Key Thresholds
Your company has 800 direct suppliers and thousands of indirect partners. CSDDD requires a scoping exercise across your entire chain of activities. You need human rights risk data, environmental impact indicators, and geographic risk profiles—but most suppliers have never been asked for this information. Your procurement team has no system to collect it.
CSDDD requires contractual assurances from direct business partners to prevent adverse impacts. You need to embed due diligence clauses into supplier contracts, verify compliance, and document everything. With 400 supplier contracts spread across 12 procurement teams in 6 countries, standardization is non-existent and tracking is manual.
The Omnibus I amendments require companies to prioritize the most severe and most likely adverse impacts. Without structured supplier risk scoring and due diligence data, you cannot demonstrate a credible prioritization methodology. Supervisory authorities will ask how you determined what to assess first—and you need evidence to answer.
Even if your company falls below CSDDD thresholds, your largest customers are in scope. They will cascade due diligence requirements down to you as a direct business partner—requesting risk assessments, grievance mechanism evidence, and contractual assurances. Without a system to respond, you lose contracts.
Certivo In Action
Certivo in Action — CSDDD Workflow
From Manual Risk Assessment to Automated Due Diligence
CORA collects and parses supplier due diligence evidence automatically. Your team focuses on high-risk exceptions and remediation—not chasing questionnaires and compiling spreadsheets.
Due Diligence Evidence Acceleration
Generate complete, audit-ready CSDDD compliance packages in hours—not the months of manual compilation across procurement, legal, and sustainability teams.
Proactive CSDDD Compliance Assurance
When supplier risk profiles shift—new geographic risks, expired certifications, corrective action failures—Certivo alerts you instantly. Know your exposure before supervisory authorities or customers ask.
Key Statistics
Frequently Asked Questions
What companies are in scope of the CSDDD after the Omnibus I amendments?
Following Directive (EU) 2026/470, the CSDDD applies to EU companies with more than 5,000 employees and net worldwide turnover exceeding €1.5 billion. Non-EU companies generating more than €1.5 billion in EU turnover are in scope regardless of employee count. EU and non-EU franchisors and licensors meeting specific royalty and turnover thresholds are also covered. Companies below these thresholds face indirect compliance pressure from in-scope customers cascading due diligence requirements.
What are the penalties for CSDDD non-compliance?
Under the Omnibus I amendments, administrative fines are capped at a maximum of 3% of global net worldwide turnover. The EU-harmonized civil liability regime has been removed—civil liability will instead be governed by national law in each Member State. National supervisory authorities can also order cessation of infringements, impose interim measures, and require corrective action. Certivo maintains a complete audit trail to demonstrate due diligence effort in the event of an investigation.
What does the CSDDD due diligence process require in practice?
Companies must follow the six-step OECD framework: integrate due diligence into policies, identify and assess adverse impacts through a scoping exercise, prevent and mitigate potential impacts, remediate actual impacts, operate a grievance mechanism, and monitor effectiveness. The Omnibus I amendments allow prioritization of the most severe and most likely impacts. Certivo's compliance platform operationalizes each step—from supplier risk assessment collection through impact prioritization to continuous audit-ready documentation.
How does Certivo support CSDDD supplier due diligence at scale?
CORA launches targeted due diligence campaigns, collects supplier risk self-assessments and audit reports in any format and language, extracts risk indicators automatically, and scores suppliers against human rights, labour, and environmental categories. The platform generates customer-ready compliance packages and annual due diligence statements from validated evidence—reducing compilation from months to hours.
How does the CSDDD relate to the CSRD, LkSG, and other EU sustainability regulations?
CSDDD covers due diligence obligations (identifying, preventing, and remediating adverse impacts). CSRD covers sustainability reporting (disclosing due diligence findings). The German LkSG and French Loi de Vigilance are national due diligence laws that CSDDD will eventually harmonize across the EU. The EU Forced Labour Regulation, Conflict Minerals Regulation, and Deforestation Regulation address specific supply chain risks that overlap with CSDDD scope. Certivo validates supplier evidence against all applicable frameworks from a single submission.