On the 23rd of May 2024 the EU council approved the EU Corporate Sustainability Due Diligence Directive (CSDDD) after months of back and forth representing a significant step towards fostering sustainable and responsible business practices across Europe. This directive primarily affects large EU companies and non-EU companies operating within the EU market, particularly those with substantial economic activities. Here we will shed light on the impact of this new directive and showcase how digital product passports are used to achieve compliance with the CSDDD.


Who is affected and what is the timeline?

The directive targets EU companies with over 1,000 employees and a net worldwide turnover exceeding €450 million. Also, non-EU companies are affected with at least €450 million in net turnover generated in the EU. The directive sets forth a phased timeline for implementation. This gradual rollout allows businesses time to adapt and integrate the necessary processes into their operations.

The directive will apply depending on the size of the companies following this timeline:

  • 3 years from the entry into force of the directive for companies with more than 5000 employees and €1 500 million turnover
  • 4 years from the entry into force for companies with more than 3000 employees and €900 million turnover
  • 5 years from the entry into force of the directive for companies with more than 1000 employees and €450 million turnover


What needs to be done?

Under the EU Corporate Sustainability Due Diligence Directive, companies are given a set of important requirements to be met along the supply chain. The challenge here is, that not all requirements are in a company’s own sphere of control and, therefore, require collaboration with suppliers from the value chain to collect and report this information.

Companies must identify, prevent, mitigate, and account for adverse human rights and environmental risks throughout their supply chains. This involves conducting thorough due diligence processes and incorporating these into corporate policies. Establishing grievance mechanisms that are accessible along the entire supply chain and engaging with stakeholders. The effectiveness of risk assessments must be evaluated every 12 months and updated if necessary. Companies must also develop and implement a due diligence strategy that includes compulsory monitoring and annual reporting on sustainability practices and a Climate Transition Plan (CTP) must be implemented.

All actors in the upstream supply chain are obliged to comply with the criteria, even if there is no direct contractual relationship with the company subject to the CSDDD.


How Xylene can help

Xylene’s digital product passports offer a robust solution for complying with the CSDDD. These digital product passports enhance visibility, streamline data collection, and facilitate value chain collaboration, making it easier for companies to monitor and report on sustainability efforts.

How to get started with digital product passports has been covered in one of our last articles. By leveraging Xylene’s technology, businesses can ensure they meet the directive’s requirements efficiently and effectively while achieving operational excellence, paving the way for a more sustainable future.


In conclusion, the EU Corporate Sustainability Due Diligence Directive presents both a challenge and an opportunity for companies to lead in responsible business practices. By showing how digital product passports are used to achieve compliance with the CSDDD you will now be able to set a roadmap for implementing these in your value chain.With tools like Xylene’s digital product passports, compliance can be seamlessly integrated into business operations, fostering transparency and accountability across value chains.