The EU Corporate Sustainability Due Diligence Directive (CSDDD) requires companies to identify, prevent, and mitigate human rights and environmental risks in their supply chains. Companies face penalties and civil liability for inadequate due diligence. Non-EU companies must comply when they meet both EU and worldwide turnover thresholds: €450M EU turnover plus €1.35B worldwide from July 2027, or €80M EU turnover plus €240M worldwide from July 2028. Norwegian exporters face cascading requirements from EU buyers conducting supplier assessments.

Already complying with Norway's Transparency Act, Germany's LkSG, or similar legislation?

Your existing workflows form the foundation for CSDDD. Factlines delivers comprehensive human rights due diligence including supplier screening, risk assessments, corrective actions, grievance mechanisms, and audit-ready documentation, while Position Green, now part of the same platform, handles environmental due diligence. Together, we help you meet CSDDD's core requirements in one unified solution.

CSDDD implementation timeline:

2027: EU companies with 1,000+ employees and €450M+ worldwide turnover

2028: EU companies with 500+ employees and €150M+ worldwide turnover

Non-EU companies: €450M+ EU turnover and €1.35B+ worldwide (2027), or €80M+ EU turnover and €240M+ worldwide (2028)

Understanding CSDDD requirements

What the directive requires from your supply chain

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How Factlines handles CSDDD supplier due diligence

Factlines provides infrastructure for CSDDD supplier due diligence: from supplier mapping and risk assessment to corrective action tracking and documentation.

The platform streamlines workflows, enables continuous monitoring, and collects the data needed for CSDDD reporting requirements.

Factlines CSDDD capabilities

Supplier mapping: Centralized database for Tier 1 and Tier 2+ relationships with risk scoring based on supplier assessments, geography, and sector indicators.

Due diligence assessments: Choose from 30 pre-built questionnaires with 1,500+ questions based on OECD due diligence frameworks, or create custom assessments tailored to your industry. Supplier portal enables document sharing and ongoing dialogue.

Corrective actions: Workflow management with timestamped audit trails documenting your prevention and remediation efforts.

Stakeholder engagement: Platform for managing supplier dialogue, document exchange, and tracking communication history.

Compliance documentation: Structured data collection supporting Article 16 public communication requirements, with audit-ready historical records.

Environmental due diligence: Through Position Green integration, access tools and data for environmental risk assessment and climate transition planning per Article 15 requirements. Advisory services available for full climate transition plan development.

For companies already complying with national due diligence laws

How CSDDD compares to national due diligence legislation

The CSDDD establishes EU-wide due diligence standards that build upon existing national laws like Norway's Transparency Act, Germany's LkSG, and France's Duty of Vigilance Law. The directive harmonizes and expands these requirements, adding mandatory climate transition plans and comprehensive environmental due diligence across value chains.

Aspect

National Due Diligence Laws

CSDDD

Scope

Primarily human rights & labor (varies by country)

Human rights + environmental + climate

Geographic

National jurisdiction

EU-wide harmonized standard

Penalities

Varies significantly by country

Effective, proportionate, and dissuasive penalties considering company turnover

Liability

Limited or no civil liability (most countries)

Full civil liability for damages

Tier 2+

Often encouraged but not explicit

Mandatory coverage with risk-based prioritization

Climate

Rarely required

Transition plans mandatory

From national compliance to EU standard

Even if you report on national due diligence laws, CSDDD requires more comprehensive coverage.

If you use Factlines for local compliance, Position Green integration adds environmental impact assessments, carbon management, and climate transition planning to address CSDDD's environmental and climate requirements.

If you haven't used Factlines yet, your existing supplier data can be imported into our platform, though assessments must be conducted within the system for full functionality.

Two key differences between national laws and CSDDD

(1) Cascading responsibility:
Contractual cascading alone is insufficient; CSDDD requires fair contractual terms, supplier support, and active prevention measures. You cannot simply pass responsibility downstream.

(2) Prevention before termination:
You must attempt remediation before ending relationships; disengagement only as last resort when violations are severe or remediation repeatedly fails. Factlines documents all prevention efforts for compliance proof.

FAQ

CSDDD supplier due diligence 2026: From risk assessment to audit-ready documentation

What the directive requires from your supply chain

How Factlines handles CSDDD supplier due diligence

How CSDDD compares to national due diligence legislation

CSDDD supplier risk management software

Frequently Asked Questions

See how Factlines handles supplier due diligence

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