Briefing note on the EU Corporate Sustainability Due Diligence Directive (CSDDD) and implications for sustainability systems

This briefing paper complements ISEAL’s Recommendations, released in November 2022, which focus on two main areas of legislative reform for the EU Corporate Sustainability Due Diligence Directive (CSDDD):

  • Strengthening the role of industry schemes, multi-stakeholder initiatives and independent third party verification as tools for due diligence compliance;
  • Amplifying the role of such industry schemes, multi-stakeholder initiatives, and independent third party verification in delivering collaborative and impactful due diligence that goes beyond what is legally required from companies.

This briefing paper further unpacks the implications of the CSDDD for industry schemes, multi-stakeholder initiatives and independent third-party verification. The analysis is based on the current state of affairs on the CSDDD, following the respective positions of the European Commission (February 2022), the Council (December 2022) and the European Parliament (June 2023). These three institutions are currently negotiating the ultimate legislative text in the final stage of the legislative process, the so-called ‘Trilogue’.