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CSDDD Software

Does your company need to comply with the EU Corporate Sustainability Due Diligence Directive?

We have the software you need to establish and manage corporate responsibility throughout your company's supply chain. 

Transparency Act illustration - produkt page
Pierre-Yves Dermagne
Large companies must take their responsibilities in the transition towards a greener economy and more social justice. The Corporate Sustainability Due Diligence directive will give us the possibility to sanction those actors that violate their obligations. It is a concrete and significant step towards a better place to live for everyone.

Pierre-Yves Dermagne

Belgian Deputy Prime Minister and Minister of the Economy and Employment

What is Corporate sustainability due diligence directive-1

What is the Corporate Sustainability Due Diligence Directive (CSDDD)?

In February 2022, the EU Commission adopted a proposal for a Directive on corporate sustainability due diligence. The initiative is also known under the name "sustainable corporate governance". The aim of this Directive is to foster sustainable and responsible corporate behaviour. 

To comply with the Directive, companies need to anchor human rights and environmental considerations in their operations and corporate governance.  

The Directive establishes a corporate due diligence duty throughout global value chains. Companies will be required to identify adverse impacts of their activities on human rights, such as child labour and exploitation of workers, and on the environment, for example pollution and biodiversity loss. Companies will also be required to prevent, end or mitigate adverse impacts.  

The duties for the directors include setting up and overseeing the implementation of the due diligence processes and integrating due diligence into the corporate strategy.

Several countries, including France and Germany, already have laws requiring companies to perform supply chain due diligence processes. The CSDDD is intended to harmonise supply chain due diligence requirements across the EU. Thus, the directive will create a level playing field throughout the EU internal market. 

Which companies will the new EU rules apply to?

  • Group 1: +/- 9,400 companies - 500+ employees and net EUR 150 million+ turnover worldwide.
  • Group 2: +/- 3,400 companies in high-impact sectors. - 250+ employees and net EUR 40+ million turnover worldwide, and operating in defined high impact sectors, e.g. textiles, agriculture, extraction of minerals. For this group, the rules start to apply two years later than for group 1.

In-scope companies will face civil liability for failure to conduct due diligence on the impact of their operations on human rights and environmental risks of their value/supply chains. Also, they face civil liability for failure to take adequate action to prevent or mitigate identified adverse impacts.

There are four conditions for a company to be held liable:

  • damage caused to a natural or legal person
  • a breach of duty
  • causal link between the damage and the breach of duty 
  • a fault (intentional or negligent)

Victims of human rights or environmental adverse impacts will be entitled to "full compensation" for the damage suffered. 

Consequences of non-compliance

Non-compliance with the CSDDD may result in:

  • Requirements from a national supervising authority to cease (or not to repeat) the infringement. The requirements can also include remedial action needed to bring the infringement to an end.
  • Sanctions that will take into account a company's efforts to comply with remedial actions required by the supervising authority. Sanctions will be based on a company's turnover and will be publicly published.
  • Damages if the company fails to comply with the obligations lead to damage caused by the adverse effect.

The Directive is not yet effective. Tripartite negotiations between the European Parliament, Council and Commission will take place during 2023 to agree on the CSDDD proposal. Once agreed, the Council and Parliament will formally adopt the CSDDD proposal. This is  expected to happen in early 2024.

However, there are several steps in-scope companies are advised to take as soon as possible:

  • Conduct a risk analysis of existing operations as well as of supply chains. 
  • Identify potential adverse human rights and/or environmental impacts.
  • Consider the potential impact of any sanction imposed. Keep in mind that details of penalties imposed may be made publicly available.
  • Review and update systems, policies and procedures that your companies use to manage the supply chain.
  • Review how sustainability due diligence information is gathered, stored, and managed.
  • Determine to what degree information already disclosed by your suppliers is sufficient against the current CSDDD proposals.
  • Consider contractual provisions when entering into new, or renewing existing, contracts. 

The practical steps required by your company

The Corporate Sustainability Due Diligence Directive (CSDDD) requires companies to perform due diligence in accordance with the OECD Guidelines for Multinational Enterprises.

The OECD Guidelines are recommendations on responsible business conduct, addressed by governments to multinational enterprises operating in or from the countries that adhere to the Guidelines. 

According to the suggested requirements, due diligence should include six steps: 

  1. Embed responsible business conduct into the enterprise's policies.
  2. Identify and assess actual and potential adverse impacts that your company, your business partners and suppliers have or may have on human rights and on the environment.
  3. Implement suitable measures to cease, prevent or mitigate adverse impacts. 
  4. Track the implementation and results of the measures taken. 
  5. Communicate with stakeholders on how adverse impacts are addressed.
  6. Provide for remediation and compensation when required.

Smart corporate sustainability software to help you comply with the CSDDD

House of Control's cloud-based solution is tailored to help you meet the requirements of the Corporate Sustainability Due Diligence Directive (CSDDD).

The software has already been live since 2022 to help Norwegian companies comply with the Norwegian Transparency Act. It is a law similar to the CSDDD, but it applies also to medium-sized businesses with fewer resources to manage the compliance requirements. Thus, the software is designed to make due diligence processes easier and more efficient. 

The starting point is a full overview of all suppliers, subsidiaries and other partners. With the software, you map conditions and identify conditions with a potentially negative impact on human rights, working conditions and the environment.

This solution includes, among other things:

  • Supplier register
  • Smart surveys
  • Storage of important documentation
  • Change log and reporting function

Software funcionalities

Intrigued? Eager to explore our innovative software solution for CSDDD in greater detail? Reach out to us for an exclusive demo.


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On the dashboard that our customers already know, you will find a widget with your surveys. It gives you an overview of responses from the suppliers.

If you already use Complete Control, the answers can be linked directly to the partner card.

You can follow each survey, see a preview of what you send out to your suppliers, and remind those who have not yet completed the survey.

The questions are grouped into themes so that you and your suppliers have an overview of the questions.

You can easily keep track of who has replied - and who has not - by a click on the recipient list. Check the answer of those who have answered, and send reminders to the others!

We have created a template that you can use as inspiration to design your own mapping of the suppliers.

Or create your own survey: You can edit, add and remove topics and questions.

Download an Excel file where all answers are collected. The file gives you the opportunity to analyze the answers in an efficient way.

When the survey has been completed, you have an excellent starting point for making a due diligence report, and you can share the results with the public.

A single point of truth for information on all your suppliers

Important information about the company's suppliers and other partners is often spread across different departments, subsidiaries and locations. It is usually difficult to keep the information up to date.

With our solution for the CSDDD, you can maintain and update central data about suppliers. These can be, for example, contracts, audits, confirmations and due diligence assessments - as well as changes to these.

The solution makes it easy for you to have control over due diligence assessments that have been made as well as to comply with other obligations that follow from the directive.


Send surveys directly to suppliers - and manage responses

We have made it easy and efficient to send questionnaires to suppliers as part of the due diligence assessments.

The software includes ready-made templates with questions about human rights, working conditions, the environment and other important topics.

You can add topics and build new questionnaires as needed.

It is easy to distribute the questionnaire because contact persons, e-mails and other data are already registered on the supplier card in the solution.


Manage suppliers

The Corporate Sustainability Due Diligence Directive (CSDDD) will make it more important than ever to work with suppliers, subcontractors and partners to map and understand potential risk.

With the software, you track who has responded to surveys, send reminders and confirm that requests for documentation have been answered.

Answers and files are easy to find on the platform. Data from the surveys can be exported to Excel with a few simple clicks.


Have a look inside our solution for the CSDDD?

Schedule your demonstration today and seize the opportunity to have your queries addressed in a brief consultation.