Overview
The Corporate Sustainability Due Diligence Directive (CSDDD) aims to enhance sustainability and human rights accountability in corporate supply chains across the EU. This directive mandates companies to identify, prevent, and mitigate adverse environmental and human rights impacts, particularly in sectors such as fashion. Fashion businesses are required to provide comprehensive disclosures regarding their due diligence processes, supply chain transparency, and sustainability practices.
Key requirements
Fashion brands must adhere to specific sustainability reporting obligations under the CSDDD, including:
- Conducting risk assessments to identify potential environmental and human rights impacts.
- Implementing policies and procedures to mitigate identified risks.
- Reporting on due diligence processes and outcomes, including measures taken to address adverse impacts.
- Engaging with affected stakeholders and ensuring transparency in communications.
Who’s affected by CSDDD
The directive applies to all large fashion companies operating in the EU, as well as small and medium-sized enterprises (SMEs) that meet specific thresholds. Generally, the CSDDD targets businesses with over 250 employees and/or a turnover exceeding €40 million, alongside companies operating in high-risk sectors, including textiles.
Timeline for compliance
Initial Reporting
Companies must start integrating due diligence into their business models by 2024.
First Annual Report
The first set of disclosures under the CSDDD is expected to be published by 2025.
How can Carbon Trail help?
Compliance Assistance
- Carbon Trail provides comprehensive support for fashion brands navigating the complexities of the CSDDD. Our services encompass data collection, risk assessment, and the preparation of sustainability reports to ensure compliance with the directive.
Services for sustainability reporting
- Carbon Accounting: Assessing and managing carbon emissions.
- Product Life Cycle Assessment (LCA): Conducting Life Cycle Assessments to evaluate environmental impacts.
- Digital Product Passports: Creating digital records to improve product transparency.
- Decarbonization Services: Strategies and solutions for reducing carbon footprints.
FAQs
What is the Corporate Sustainability Due Diligence Directive?
The CSDDD is a legislative initiative aimed at ensuring that companies conduct due diligence to identify and mitigate adverse impacts on human rights and the environment within their supply chains.
Who needs to comply with the CSDDD?
Large fashion companies with over 250 employees and/or €40 million in turnover, along with certain SMEs in high-risk sectors, must comply with the directive.
What are the main obligations under the CSDDD?
Companies must conduct risk assessments, implement mitigation measures, report on their due diligence processes, and engage with stakeholders.
When do companies need to start reporting?
Fashion brands are required to begin integrating due diligence processes by 2024, with the first annual report due by 2025.
How can Carbon Trail assist my fashion brand?
Carbon Trail offers a range of services including data collection, risk assessments, and sustainability reporting to help brands meet compliance requirements.
What resources are available for more information on the CSDDD?
For more detailed information, companies can refer to the following reliable government resources.
