When does the CSDDD require remediation?
The mandatory trigger is narrow: the company must provide remediation when it has caused or jointly caused an . The Directive defines remediation as restoring affected persons, communities, or the environment to a situation equivalent or as close as possible to the one that would have existed without the impact. The response must be proportionate to the company's implication.
Do not treat every supplier incident as an automatic company-funded remedy. If the was caused only by a business partner, the company may provide voluntary and may use its influence over that business partner to enable remediation.
- Mandatory: the company caused or jointly caused the .
- Voluntary or influence-based: only the business partner caused the .
- Not enough by itself: a potential impact, a weak allegation, or a general supply-chain risk without an identified .
- can include financial or non-financial compensation and, where applicable, reimbursement of public-authority costs for necessary remedial measures.
- Article 12 is separate from Article 11 measures to end an actual impact or minimise its extent; the same incident may require both.
Binding amendment that entered into force on 18 March 2026; its CSDDD changes must be transposed by 26 July 2028 and applied from 26 July 2029.
Article 12 sets the mandatory remediation trigger and distinguishes company-caused or jointly caused impacts from impacts caused only by a business partner.