When does the CSDDD require remediation?
The mandatory remediation trigger is narrow: the company must provide remediation when it has caused or jointly caused an actual adverse impact. The directive describes 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, proportionate to the company's implication.
Do not treat every supplier incident as an automatic company-funded remedy. If the actual adverse impact was caused only by a business partner, the company may provide voluntary remediation and may use its influence over that business partner to enable remediation.
- Mandatory: the company caused or jointly caused the actual adverse impact.
- Voluntary or leverage-based: only the business partner caused the actual adverse impact.
- Not enough by itself: a potential impact, a weak allegation, or a general supply-chain risk without an identified actual adverse impact.
- Remediation can include financial or non-financial compensation and, where applicable, reimbursement of public-authority remedial costs.
Article 12 sets the mandatory remediation trigger and distinguishes company-caused or jointly caused impacts from impacts caused only by a business partner.