Governance Briefing — EU Corporate Sustainability Due Diligence Directive phase-in

Executive briefing: Directive (EU) 2024/1760 on corporate sustainability due diligence (CSDDD) entered into force on 25 July 2024. Member States must transpose the directive by 26 July 2026. Companies with more than 5,000 employees and €1.5 billion net worldwide turnover must comply from 26 July 2027. Boards must oversee human rights and environmental due diligence, adopt climate transition plans aligned with the Paris Agreement, and integrate due diligence into risk management and remuneration.

Key governance signals

Board duty of care. Directors must account for human rights, climate, and environmental impacts when fulfilling their duty to act in the company’s best interests.
Due diligence governance. Companies must establish due diligence policies, risk mapping, preventive and corrective measures, and complaints procedures with board oversight.
Climate transition plan. Companies must adopt and implement a plan to ensure business models align with the 1.5 °C objective, with executive remuneration linked to progress.

Action checklist

Launch cross-functional programmes to map supply-chain risks, data requirements, and remediation workflows.
Integrate due diligence obligations into procurement, risk management, and compliance frameworks.
Develop board reporting that tracks due diligence KPIs, stakeholder engagement, and transition plan milestones.

Enablement moves

Implement grievance mechanisms and whistleblowing channels that feed into remediation processes.
Deploy technology platforms to monitor supplier performance, audit trails, and corrective actions.
Coordinate investor communications on transition plan targets, governance structures, and performance incentives.

Sources

Zeph Tech helps multinational boards operationalise CSDDD by industrialising due diligence controls, transition planning, and stakeholder reporting.