Indirect impact on SMEs Although the CSDDD does not directly govern SMEs, they will feel its effects indirectly as part of larger corporations’ value chains.
The directive includes safeguards to protect SMEs, mandating that larger companies offer support such as capacity building, training and financial assistance.
Terminating relationships with SMEs is only permitted as a last resort to avoid disproportionate harm.
Interplay with other legislation The CSDDD interacts with existing EU regulations, including the Conflict Minerals Regulation, Batteries Regulation, Deforestation Regulation and the forthcoming Forced Labour Regulation. It establishes minimum harmonisation standards while allowing Member States to impose stricter obligations or expand the scope in certain areas.
128 April 2025