The CSDDD requires large companies to identify, prevent, mitigate and account for adverse human rights and environmental impacts in their own operations, subsidiaries, and value chains. It covers issues such as labour rights, biodiversity loss, and pollution. Adopted in July 2024, Member States have until July 2027 to transpose it into national law.
Although Romania has not yet completed transposition, preparations are underway. For companies, this directive will mean stronger due diligence processes, expanded supplier oversight, and transparent reporting. For SMEs indirectly affected through supply chain requirements, early adoption of digital traceability and risk management tools will be an advantage.
Corporate Sustainability Due Diligence Directive (CSDDD)
The Corporate Sustainability Due Diligence Directive (CSDDD) establishes new obligations for large EU and non-EU companies operating in the EU. It requires them to identify, prevent and mitigate adverse human rights and environmental impacts across their global operations and supply chains. It represents a major shift in how corporate responsibility is regulated, reinforcing the goals of the European Green Deal and international ESG standards.
The directive entered into force on 25 July 2024. The initial deadline for national implementation was July 2026, but this has now been extended to 26 July 2027. This additional time allows national authorities and companies to prepare internal processes and legal frameworks.
The directive applies to companies with more than 1,000 employees and an annual global turnover of over €450 million. However, its impact is expected to reach smaller businesses as well, particularly those working with or supplying larger firms. It introduces requirements such as due diligence policies, monitoring and risk assessment procedures, corrective actions and public reporting. Civil liability and enforcement measures are also part of the legislative package.
Romania has not yet adopted a national law to transpose the directive, but preparatory work is under way. Discussions are taking place within ministries and business associations to explore how local companies can align early with the requirements. The topic has already attracted attention from advocacy groups and sustainability experts.
