# CSDDD - Verified Reference (mid-2026)

> Companion to `SKILL.md`. Facts verified by web search on **2026-06-15** against EU
> institutions and major law-firm trackers. Where the final text is settled, it is
> marked **FINAL**. Where national detail is still being written, it is marked **IN FLUX**.
> Items not fully nailed down: **// VERIFY**.

## 1. What the CSDDD is

- **CSDDD** = Corporate Sustainability Due Diligence Directive (also "CS3D").
- **Original act:** **Directive (EU) 2024/1760** (adopted 2024, in force July 2024).
- **Amending act:** **Directive (EU) 2026/470** ("Omnibus I" simplification, CSDDD + CSRD),
  published in the Official Journal **26 February 2026**, **in force 18 March 2026**. FINAL.
- Earlier 2025 "Stop-the-clock" directive postponed deadlines while the substance was
  negotiated; superseded by the final 2026/470 text.
- **Purpose:** require the largest companies to run **human-rights and environmental
  due diligence** across their own operations, subsidiaries, and **chain of activities** -
  to identify, prevent, mitigate, end and account for adverse impacts.
- **Built on:** OECD Guidelines for Multinational Enterprises / OECD Due Diligence
  Guidance for RBC, and the UN Guiding Principles on Business and Human Rights.
- **Not the same as:** CSRD (sustainability *reporting/disclosure*) or EUDR
  (deforestation-free product rules). CSDDD is a *conduct/due-diligence* obligation.

## 2. Scope & thresholds (FINAL, post-Omnibus)

| Company type | Employees | Net turnover | In scope when |
|---|---|---|---|
| **EU company** | **> 5,000** | **> EUR 1.5 billion worldwide** | BOTH met |
| **Non-EU company** | (no employee test) | **> EUR 1.5 billion generated in the EU** | turnover met |

- Tested at the **ultimate parent / group** level.
- **Franchising / licensing** can be caught via royalty + turnover tests (royalties in
  the EU above a threshold + net turnover above a threshold). // VERIFY exact franchising
  figures against the final Art. 2 consolidated text before relying on them.
- **Estimated population:** ~6,000 EU companies + ~900 non-EU companies (per European
  Commission page). Far fewer than the original ~16,000+ projected under the 2024 text.
- **Superseded original 2024 thresholds:** 1,000+ employees AND EUR 450m turnover, phased
  in by company size, with a lower "high-impact sector" tier. The **phased waves** and the
  **high-impact-sector tier were removed**.
- **Indirect reach:** smaller companies are still affected as **suppliers / business
  partners** of in-scope companies - the practical reason most SMEs care.

## 3. Timeline (FINAL)

| Milestone | Date |
|---|---|
| Omnibus I (2026/470) in force | 18 March 2026 |
| Commission main guidelines | by 26 July 2027 |
| Member State transposition | by 26 July 2028 |
| Further Commission guidance | by 26 July 2028 |
| **Application / compliance** | **26 July 2029** (single date) |
| First reporting (via CSRD, Art. 16) | financial years starting on/after 1 January 2030 |
| Delegated act on website-statement format | by ~31 March 2029 // VERIFY |
| First effectiveness review | by 26 July 2031, then every ~5 years |

- The original phased application waves (2027 / 2028 / 2029 by size) were **scrapped** -
  one single application date for all in-scope companies.

## 4. The 6-step due-diligence cycle (OECD/UNGP-aligned; structure unchanged)

1. **Embed** due diligence into policies and management systems (due-diligence policy +
   code of conduct for own operations, subsidiaries, business partners).
2. **Identify & assess** actual and potential adverse impacts (risk-based **scoping**,
   then deeper assessment of priority areas).
3. **Prevent & mitigate** potential impacts (action plans, contractual assurances +
   verification, supplier support / capacity building).
4. **Bring to an end / remediate** actual impacts (corrective action + remediation).
5. **Stakeholder engagement + complaints / notification mechanism** (grievance channel).
6. **Monitor & communicate** - assess effectiveness and report publicly.

## 5. What Omnibus I changed (FINAL in the amending text)

| Topic | Original 2024 CSDDD | Final post-Omnibus (2026/470) |
|---|---|---|
| Scope thresholds | 1,000 emp / EUR 450m, phased, high-impact tier | 5,000 emp AND EUR 1.5bn (EU) / EUR 1.5bn EU turnover (non-EU); no waves |
| Application date | phased 2027-2029 | single date **26 July 2029** |
| Transposition | 26 July 2026 | **26 July 2028** |
| Chain coverage | "chain of activities", focus on direct partners | retained; scoping uses info **already reasonably available**; deeper only on **plausible information** |
| Supply-chain mapping | full mapping | risk-based **scoping** of most likely/severe impacts |
| SME information requests | broader | **targeted/reasonable/proportionate**; beyond a standard set for partners <5,000 emp = **last resort** |
| Monitoring frequency | every 12 months | first review by **26 July 2031**, then ~every **5 years** (+ on significant change) |
| Penalties | "at least 5%" floor | **cap of 3%** of net worldwide turnover |
| Civil liability | EU-wide harmonised regime | **removed**; left to national law |
| Relationship handling | termination as last resort | emphasis on **suspending** while action plan runs |
| Climate transition plan (Art. 22) | adopt **and put into effect** Paris-aligned plan | standalone duty **deleted** from CSDDD (transition-plan **reporting** may remain under CSRD) |

## 6. Enforcement (FINAL where stated; national detail IN FLUX)

- Each Member State designates a **supervisory authority**; coordinated by a European
  Network of Supervisory Authorities.
- **Fines capped at 3% of net worldwide turnover** (the old "not less than 5%" floor
  removed). Commission to issue penalty guidance.
- **Civil liability removed** at EU level - whether non-compliance triggers civil
  liability is now a matter of **national law**. The duty to review the civil-liability
  regime's effectiveness was also deleted.
- Exact penalties, the supervisory authority, and any national civil-liability choices
  are **IN FLUX** until each Member State transposes (by 26 July 2028).

## 7. Climate transition plan (state carefully)

- Original Art. 22 required in-scope companies to **adopt and put into effect** a
  1.5C / Paris-aligned climate transition plan.
- **Omnibus I deleted the standalone CSDDD obligation.** There is no CSDDD duty to design
  and implement a transition plan in the final text.
- **What remains:** CSRD-scope companies that **have** a transition plan still **report**
  on it under CSRD. // VERIFY against current CSRD/ESRS rules for the specific entity.

## 8. How keyword topics map to the cycle (for supplier-facing tools)

- **Due-diligence questionnaire (SAQ):** practical tool in step 2; Omnibus pushes toward
  **standardised, proportionate** questionnaires (SME protection).
- **Human-rights policy / due-diligence policy:** step 1 (embed).
- **Supplier code of conduct:** step 1 + contractual assurances backed by **verification**.
- **Value-chain / supply-chain mapping:** step 2, now risk-based **scoping**.
- **Human-rights due diligence (HRDD):** the human-rights half of the cycle (UNGP language).
- **Supplier audit:** a verification method under steps 3-6.
- **Risk assessment:** step 2 - country x sector x commodity scoring.

## 9. Sources (accessed 2026-06-15)

- Directive (EU) 2024/1760 (original CSDDD), EUR-Lex:
  https://eur-lex.europa.eu/eli/dir/2024/1760/oj
- European Commission, Corporate sustainability due diligence (scope ~6,000 EU + ~900
  non-EU; thresholds; 26 July 2028 transposition / 26 July 2029 application; 2026/470 in
  force 18 March 2026):
  https://commission.europa.eu/topics/business-and-industry/doing-business-eu/sustainability-due-diligence-responsible-business/corporate-sustainability-due-diligence_en
- Council of the EU press release, Omnibus I signed off (24 Feb 2026):
  https://www.consilium.europa.eu/en/press/press-releases/2026/02/24/council-signs-off-simplification-of-sustainability-reporting-and-due-diligence-requirements-to-boost-eu-competitiveness/
- Covington (Inside Energy & Environment), Omnibus published in OJ; Directive (EU) 2026/470;
  guidelines by 26 July 2027 / 2028; delegated act ~31 March 2029:
  https://www.cov.com/en/news-and-insights/insights/2026/02/eu-csddd-csrd-omnibus-published-in-official-journal-transposition-delegated-acts-and-guidelines-are-next
- DLA Piper, CSDDD amendments under Omnibus I finalised (5,000 emp / EUR 1.5bn; 3% cap;
  proportionate information requests):
  https://knowledge.dlapiper.com/dlapiperknowledge/globalemploymentlatestdevelopments/2026/corporate-sustainability-due-diligence-directive-amendments-under-omnibus-i-finalised
- DLA Piper, Omnibus I enters into force 18 March 2026:
  https://www.dlapiper.com/en-us/insights/blogs/environment-health-safety-and-product-compliance/2026/eu-omnibus-i-directive-amending-csrd-and-csddd-will-enter-into-force-on-18-march-2026
- Clifford Chance, Omnibus I concludes CSDDD/CSRD reforms (civil liability removed;
  climate transition plan deleted; first review 26 July 2031 then every 5 years; tier-1
  focus):
  https://www.cliffordchance.com/insights/resources/blogs/business-and-human-rights-insights/2026/02/omnibus-i-the-european-union-concludes-csddd-and-csrd-reforms.html
- OECD Due Diligence Guidance for Responsible Business Conduct:
  https://www.oecd.org/industry/inv/mne/OECD-Due-Diligence-Guidance-for-Responsible-Business-Conduct.pdf