What is the difference between CSRD and CSDDD?
CSRD is sustainability reporting; CSDDD is sustainability due diligence on human-rights and environmental impacts.
CSRD vs CSDDD: CSRD tells in-scope companies what sustainability information to report; CSDDD tells in-scope companies what due-diligence processes to run for certain human-rights and environmental impacts. Sources: EUR-Lex: Corporate Sustainability Reporting Directive; EUR-Lex: Corporate Sustainability Due Diligence Directive.
The short version
CSRD is disclosure architecture. CSDDD is conduct and governance architecture for identifying, preventing, mitigating and addressing impacts.
Side by side
Directive
CSRD
Corporate Sustainability Reporting Directive
- What it is
- CSRD expands sustainability reporting duties and connects company disclosures to European Sustainability Reporting Standards.
- Scope
- Sustainability information in management reporting, including environmental, social, human-rights and governance matters under the directive's company-size and listing criteria.
- Who it applies to
- Large companies, listed SMEs and certain non-EU groups through phased scope rules once implemented in national law.
- Key dates
- Adopted in 2022.
- Reporting is phased by company category, beginning with financial years from 2024 for the first wave.
- Core obligations
- Report sustainability information using ESRS where in scope.
- Apply double materiality, digital tagging and assurance requirements as phased in.
- Include sustainability reporting in the management report.
- Penalties
- CSRD relies on Member States to set effective, proportionate and dissuasive penalties through national transposition.
Directive
CSDDD
Corporate Sustainability Due Diligence Directive
- What it is
- CSDDD creates corporate due-diligence duties for certain human-rights and environmental impacts in operations and chains of activities.
- Scope
- Due diligence on actual and potential adverse human-rights and environmental impacts, plus climate transition-plan duties for in-scope companies.
- Who it applies to
- Large EU companies and certain non-EU companies meeting the directive's turnover and scope thresholds after national transposition and phase-in.
- Key dates
- Entered into force in 2024.
- Member States must transpose it, with obligations phased in by company size and turnover.
- Core obligations
- Integrate due diligence into policies and risk-management systems.
- Identify, assess, prevent, mitigate, bring to an end and remediate covered adverse impacts.
- Adopt and put into effect a climate transition plan where required.
- Penalties
- Member States must set penalties; pecuniary penalties must use net worldwide turnover and the maximum limit must be at least 5%.
Which applies to you?
If the question is annual sustainability reporting, start with CSRD and ESRS. If the question is supply-chain or operations due diligence, remediation and transition planning, check CSDDD too.
Frequently asked
Is CSRD the same as CSDDD?
No. CSRD is about sustainability reporting; CSDDD is about due diligence duties for certain adverse human-rights and environmental impacts.
Can a company be in scope of both?
Yes. Large companies may have CSRD reporting duties and CSDDD due-diligence duties, depending on the final national scope and phase-in.
Which one requires ESRS reporting?
CSRD is the directive tied to European Sustainability Reporting Standards. CSDDD has its own due-diligence and transition-plan duties.
Official sources
Comparisons are grounded explainers, not legal advice. Use the linked EUR-Lex texts and official sources for binding legal wording.
Related terms
Does this comparison affect your company?
Enter your company and Lex builds a cited Exposure Map in about 30 seconds. Free, no login.