EU · directive
Directive (EU) 2024/1760, amended by Directive (EU) 2026/470 (Omnibus I)
Scope
The amended directive covers EU companies exceeding both 5,000 employees and EUR 1.5 billion worldwide turnover, and non-EU companies with more than EUR 1.5 billion Union turnover. It does not directly impose its duties on SMEs. As a directive, it requires national transposition.
Penalties
Member States must provide Dictionary termPecuniary penaltiesmaximum at least **3% of worldwide net turnover** (national design); no harmonised EU civil-liability regime (deleted by Omnibus)Read the full definition and publication of penalty decisions. Under the amended directive, the maximum pecuniary penalty is capped at 3% of net worldwide turnover; liability otherwise remains governed by national law.
Last verified
2026-08-26
In plain language
The Dictionary termCorporate sustainabilityA strategic approach in which companies pursue long-term value creation by managing environmental, social and governance performance as core business concerns.Read the full definition Dictionary termDue DiligenceAn ongoing, risk-based process through which an organisation identifies, prevents, mitigates, tracks and communicates how it addresses adverse impacts, and supports remediation where appropriate.Read the full definition Directive is an EU conduct directive for the largest companies. It requires risk-based Dictionary termHuman RightsThe universal and inherent rights and freedoms held by every person because they are human, without discrimination.Read the full definition and environmental due diligence across operations, subsidiaries and the chain of activities; the 2026 Omnibus amendments substantially narrowed scope and changed several duties and remedies.
Formal requirements
Reviewed provisions grouped by practical purpose. Use the official text for the full legal context.
>5,000 employees AND >€1.5bn worldwide net turnover (post-Omnibus single test)
CSDDD — Directive (EU) 2024/1760, amended by Omnibus I · instrument-level citationthird-country companies via EU-turnover route
CSDDD — Directive (EU) 2024/1760, amended by Omnibus I · instrument-level citationAmended CSDDD scope: EU companies must exceed both 5,000 employees and EUR 1.5 billion worldwide turnover; the third-country route is more than EUR 1.5 billion Union turnover.
Directive (EU) 2024/1760 as amended by Directive (EU) 2026/470Transposition 26 Jul 2028
CSDDD — Directive (EU) 2024/1760, amended by Omnibus I · instrument-level citationsingle application date 26 Jul 2029 (phased waves abolished)
CSDDD — Directive (EU) 2024/1760, amended by Omnibus I · instrument-level citationCommission guidelines by 26 Jul 2027
CSDDD — Directive (EU) 2024/1760, amended by Omnibus I · instrument-level citationThe amended directive has a 26 July 2028 transposition deadline and a single 26 July 2029 application date for in-scope companies.
Directive (EU) 2026/470Public annual statement on the company's website
CSDDD — Directive (EU) 2024/1760, amended by Omnibus I · instrument-level citationDictionary termClimate transition planA climate transition plan is a time-bound plan describing how an organisation intends to align strategy, operations, capital allocation and governance with climate goals.Read the full definition obligation removed by Omnibus I (formerly Art. 22)
CSDDD — Art. 22Integrate Dictionary termDue DiligenceAn ongoing, risk-based process through which an organisation identifies, prevents, mitigates, tracks and communicates how it addresses adverse impacts, and supports remediation where appropriate.Read the full definition into policies and management systems
CSDDD — Directive (EU) 2024/1760, amended by Omnibus I · instrument-level citationIdentify and assess actual/potential Dictionary termAdverse impactsAdverse impacts are negative effects on people, the environment, rights, communities or systems connected to an organisation, product, activity or relationship.Read the full definition
CSDDD — Directive (EU) 2024/1760, amended by Omnibus I · instrument-level citationPrioritise by Dictionary termSeverityThe gravity of a negative impact, assessed through its scale, scope and how difficult it would be to restore affected people to their prior enjoyment of rights.Read the full definition and likelihood using a Dictionary termRisk-based approachA risk-based approach is a method that prioritises attention, resources and controls according to the likelihood and severity of potential impacts or non-compliance.Read the full definition .
CSDDD — Directive (EU) 2024/1760, amended by Omnibus I · instrument-level citationNo general requirement to map every indirect partner.
CSDDD — Directive (EU) 2024/1760, amended by Omnibus I · instrument-level citationDictionary termMonitoringThe continuous or periodic collection, analysis and use of information to track implementation, conditions, risks and progress against defined expectations.Read the full definition effectiveness (at least every 24 months and after significant changes)
CSDDD — Directive (EU) 2024/1760, amended by Omnibus I · instrument-level citationPrevent potential impacts — Dictionary termPreventive actionPreventive action is action taken to reduce the likelihood that a potential problem, failure or nonconformity will occur.Read the full definition plans, contractual assurances (no longer requiring cascading to indirect partners post-Omnibus).
CSDDD · instrument-level citationBring to an end actual impacts — Dictionary termCorrective actionAction taken to eliminate the cause of a non-conformity and prevent its recurrence, rather than merely removing the immediate symptom.Read the full definition plans; responsible suspension/termination as last resort.
CSDDD · instrument-level citationDictionary
Terms with a retained, published connection to this legal source.
Claims
Search or filter the reviewed connections, then open one claim for its full market-by-market assessment.
Tier-1+ mapping; Dictionary termAuditA systematic, independent and documented process for obtaining objective evidence and evaluating it against defined criteria to determine the extent to which requirements are fulfilled.Read the full definition + Dictionary termRemediationRemediation is the process of addressing, correcting or making good an adverse impact after it has occurred.Read the full definition evidence; absolute claims high-risk
Absolute claim requires audited supplier base; third-party social audits across manufacturing tiers.
Define 'fair' (Dictionary termLiving wageThe wage level necessary to afford a decent standard of living for workers and their families, earned during normal working hours and calculated for a particular country or place.Read the full definition Dictionary termBenchmarkA defined reference point or comparative standard used to interpret performance, set expectations or assess whether a result is stronger, weaker or different from an appropriate comparator.Read the full definition ); wage data across direct suppliers; methodology named.
Programme existence, coverage %, Dictionary termMonitoringThe continuous or periodic collection, analysis and use of information to track implementation, conditions, risks and progress against defined expectations.Read the full definition -and-Dictionary termRemediationRemediation is the process of addressing, correcting or making good an adverse impact after it has occurred.Read the full definition results (e.g. CLMRS data); cannot imply zero child labour.
Dictionary termBenchmarkA defined reference point or comparative standard used to interpret performance, set expectations or assess whether a result is stronger, weaker or different from an appropriate comparator.Read the full definition -defined wage gaps per country; supplier wage data; published Dictionary termRoadmapA roadmap is a sequenced plan that links actions, responsibilities, timing and milestones to a desired objective.Read the full definition and progress.
'Responsibly sourced' methodology published (JDE Peet's re-based it to HREDD ahead of CSDDD); third-party Dictionary termVerificationThe evidence-based confirmation that a claim about events, data or results already obtained is truthfully stated within defined criteria, scope and materiality.Read the full definition scope; partial progress stated honestly (88.8% global at end-2025).
HRDD methodology published (assess-address-progress); compliance definition; supplier coverage %; Dictionary termAlignmentThe deliberate process of making strategies, requirements, incentives, data or actions consistent enough to support a shared objective without necessarily making them identical.Read the full definition with JDE-style re-basing to HREDD where applicable.