The EU Corporate Sustainability Due Diligence Directive (EU CSDDD) requires companies to conduct environmental and human rights due diligence, ensuring that businesses operating within the EU single market contribute to the EU’s broader goals of sustainability and climate neutrality. Negotiated as part of the EU political process from 2021 to 2024, the directive officially entered into force in July 2024.
In 2024, the European Commission announced that a key priority for its 2024–2029 mandate would be enhancing the EU’s global competitiveness, including reducing regulatory and administrative burdens on businesses. As part of this initiative, the Commission introduced an Omnibus package in February 2025, which proposes changes to the EU CSDDD, amongst other sustainability laws.
This snapshot explores the European Commission’s proposed changes to the scope of the due diligence duty under the EU CSDDD, and their potential impact on businesses. As the European Parliament and the Council of the European Union now review the proposed text and consider amendments, corporate practitioners play a crucial role in informing the discussion and ensuring that the final text supports both sustainability objectives and business feasibility.
