The European Commission recently proposed amendments to the Corporate Sustainability Due Diligence Directive (CSDDD), postponing implementation to July 2028 while simplifying certain requirements. Despite these changes, companies need robust compliance strategies.
Streamlined Due Diligence Approach
The amendments reduce the burden on indirect business partners, requiring in-depth assessments only when plausible information suggests adverse impacts. Companies can now extend periodic assessments from annual to 5-year intervals. Ksapa’s proprietary assessment tools aligned with international standards help companies establish efficient monitoring systems that remain responsive while meeting these new timeframes in times of business uncertainty.
SME Protection Measures
The revised CSDDD limits information requests from larger companies to their SME partners. Ksapa’s simplified due diligence methodology enables SMEs to meet compliance requirements without excessive administrative burden, while helping larger companies gather necessary data through targeted questionnaires and streamlined processes.
Civil Liability Changes
The proposal defers to national civil liability regimes by removing EU-harmonized conditions. Ksapa’s legal experts provide country-specific compliance guidance, helping multinational companies navigate varied regulatory landscapes and minimize legal exposure through tailored risk mitigation strategies.
Conclusion
While the CSDDD amendments provide relief to businesses, they maintain the directive’s core objectives of preventing adverse human rights and environmental impacts. Ksapa’s cross-functional expertise in human rights, sustainability compliance, and risk management helps companies transform compliance necessities into competitive advantages. Our sectoral expertise and digital solutions support businesses of all sizes in creating value-driven approaches to human rights due diligence that align with both regulatory requirements and stakeholder expectations.
Author of several books and resources on business, sustainability and responsibility. Working with top decision makers pursuing transformational changes for their organizations, leaders and industries. Working with executives improving resilience and competitiveness of their company and products given their climate and human right business agendas. Connect with Farid Baddache on Twitter at @Fbaddache.
