---
title: "EU CSDDD Penalties and Fines"
canonical_url: "https://www.sorena.io/artifacts/eu/csddd/penalties-and-fines"
source_url: "https://www.sorena.io/artifacts/eu/corporate-sustainability-due-diligence-directive/penalties-and-fines"
author: "Sorena AI"
description: "Focus on Article 27 of the CSDDD. This page explains how Member States must structure penalties, what the at least 5 percent maximum turnover cap means."
published_at: "2026-02-21"
updated_at: "2026-02-21"
keywords:
  - "EU CSDDD penalties"
  - "CSDDD fines"
  - "Article 27 CSDDD"
  - "CSDDD 5 percent turnover fine"
  - "CSDDD supervisory penalty publication"
  - "EU CSDDD"
  - "Penalties"
  - "Fines"
  - "Article 27"
  - "Supervisory authorities"
---
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# EU CSDDD Penalties and Fines

Focus on Article 27 of the CSDDD. This page explains how Member States must structure penalties, what the at least 5 percent maximum turnover cap means.

*EU CSDDD* *Article 27*

## EU CSDDD (Directive (EU) 2024/1760) Penalties and fines

A focused read on the administrative penalty side of the Directive.

Use this when boards or legal teams ask what the fine exposure language actually means.

Article 27 does not create one EU wide fine schedule. It obliges Member States to set national penalty rules that meet minimum characteristics and certain minimum severity requirements. The most important of those is the turnover linked maximum cap for pecuniary penalties.

## What Member States must provide

Member States must lay down rules on penalties, including pecuniary penalties, for infringements of national law adopted under the Directive. Those penalties must be effective, proportionate, and dissuasive.

This means the exact procedural details will differ by Member State after transposition, but the high level structure cannot be purely symbolic.

- Expect national procedural variation.
- Do not expect low consequence transposition only.
- Track the national law in the Member State with the competent supervisory authority.

## The turnover benchmark that sets the ceiling floor

When pecuniary penalties are imposed, the maximum limit must be not less than 5 percent of the company net worldwide turnover in the financial year preceding the decision to impose the fine. That is a floor for the national maximum cap, not the automatic fine in every case.

For companies in certain parent company categories, the turnover basis must take into account consolidated turnover reported by the ultimate parent company.

- The Directive sets the minimum severity of the national cap.
- The actual fine will depend on national law and case facts.
- Group structure can affect the turnover reference base.

## Factors that influence penalty level

Article 27 requires Member States to take account of relevant circumstances when deciding whether to impose penalties and at what level. In practice, that means effort, cooperation, remediation, and prior conduct can matter once national laws are in place.

The operational implication is simple: retain evidence of what the company did, when it did it, and how it responded once concerns were identified.

- Keep chronology and decision records.
- Record remediation and cooperation steps clearly.
- Maintain evidence showing whether failures were isolated or systemic.

## Publication of penalty decisions

Member States must ensure that supervisory authority decisions concerning penalties are published, remain publicly available for at least five years, and are sent to the European Network of Supervisory Authorities. That makes penalty exposure a reputational issue as well as a financial one.

Companies should therefore prepare an external communications plan that aligns with the legal response plan.

- Published decisions can shape investor and customer reactions.
- Prepare response lines before a case arises.
- Coordinate legal, compliance, and communications owners.

*Recommended next step*

*Placement: after the enforcement section*

## Use EU CSDDD (Directive (EU) 2024/1760) Penalties and fines as a cited research workflow

Research Copilot can take EU CSDDD (Directive (EU) 2024/1760) Penalties and fines from understanding exposure and enforcement with cited answers to a reusable workflow inside Sorena. Teams working on EU CSDDD (Directive (EU) 2024/1760) can keep owners, evidence, and next steps aligned without copying this guide into separate documents.

- [Open Research Copilot for EU CSDDD (Directive (EU) 2024/1760) Penalties and fines](/solutions/research-copilot.md): Start from EU CSDDD (Directive (EU) 2024/1760) Penalties and fines and answer scope, timing, and interpretation questions with cited outputs.
- [Talk through EU CSDDD (Directive (EU) 2024/1760)](/contact.md): Review your current process, evidence gaps, and next steps for EU CSDDD (Directive (EU) 2024/1760) Penalties and fines.

## Primary sources

- [Directive (EU) 2024/1760 - Consolidated text as of 17 April 2025](https://eur-lex.europa.eu/eli/dir/2024/1760/2025-04-17/eng?ref=sorena.io) - Best source for the current operative wording after the 2025 timing amendment.
- [Directive (EU) 2024/1760 - Official Journal](https://eur-lex.europa.eu/eli/dir/2024/1760/oj/eng?ref=sorena.io) - Primary legal text for Articles 2 to 29, the Annex, and the original implementation architecture.

## Related Topic Guides

- [EU CSDDD Applicability Test | Thresholds, Group Scope, and Start Dates](/artifacts/eu/corporate-sustainability-due-diligence-directive/applicability-test.md): Use this CSDDD applicability test to check the 1000 employee and EUR 450 million threshold, franchising and licensing triggers, non-EU EU-turnover rules.
- [EU CSDDD Chain of Activities and Supplier Scope | Upstream, Downstream, and Boundary Rules](/artifacts/eu/corporate-sustainability-due-diligence-directive/chain-of-activities-and-suppliers.md): Map the CSDDD chain of activities correctly. This guide explains upstream and downstream coverage, direct and indirect business partners.
- [EU CSDDD Checklist | Practical Due Diligence Checklist by Workstream](/artifacts/eu/corporate-sustainability-due-diligence-directive/checklist.md): Use this CSDDD checklist to move from scope to execution.
- [EU CSDDD Climate Transition Plan | Article 22 Requirements and Practical Structure](/artifacts/eu/corporate-sustainability-due-diligence-directive/climate-transition-plan.md): Understand the Article 22 climate transition plan duty under the CSDDD.
- [EU CSDDD Compliance Guide | Operating Model, Evidence, and Readiness](/artifacts/eu/corporate-sustainability-due-diligence-directive/compliance.md): Build a real CSDDD compliance program. This guide explains how to turn Directive (EU) 2024/1760 into a due diligence operating model across policy, mapping.
- [EU CSDDD Deadlines and Compliance Calendar | Current Dates after Directive (EU) 2025/794](/artifacts/eu/corporate-sustainability-due-diligence-directive/deadlines-and-compliance-calendar.md): Track the current CSDDD rollout dates, including the 25 July 2024 entry into force, 26 July 2027 transposition deadline, 31 March 2027 reporting act deadline.
- [EU CSDDD Due Diligence Steps Playbook | Articles 7 to 15 in Practical Order](/artifacts/eu/corporate-sustainability-due-diligence-directive/due-diligence-steps-playbook.md): Follow the CSDDD due diligence steps in the order teams actually need to execute them: policy, chain mapping, prioritization, prevention, corrective action.
- [EU CSDDD FAQ | Current Answers on Scope, Dates, Complaints, Penalties, and Climate Plans](/artifacts/eu/corporate-sustainability-due-diligence-directive/faq.md): Get grounded answers to common CSDDD questions, including the current application dates, who is in scope, how the chain of activities works.
- [EU CSDDD Grievance and Remediation Workflows | Articles 12 to 14 in Practice](/artifacts/eu/corporate-sustainability-due-diligence-directive/grievance-and-remediation-workflows.md): Design a CSDDD grievance and remediation workflow that fits Articles 12 to 14.
- [EU CSDDD Liability and Penalties | Civil Liability, Fines, and Supervisory Action](/artifacts/eu/corporate-sustainability-due-diligence-directive/liability-and-penalties.md): Understand how Article 27 penalties and Article 29 civil liability interact under the CSDDD.
- [EU CSDDD Requirements | Article by Article Requirement Map](/artifacts/eu/corporate-sustainability-due-diligence-directive/requirements.md): Map the main CSDDD requirements by article, including Article 7 policy, Article 8 identification, Article 9 prioritization.
- [EU CSDDD Scope Thresholds and In Scope Groups | Current Thresholds and Waves](/artifacts/eu/corporate-sustainability-due-diligence-directive/scope-thresholds-and-in-scope-groups.md): Review the current CSDDD scope thresholds, in scope company groups, franchising and licensing rules, non-EU turnover triggers.
- [EU CSDDD Supplier Human Rights Risk Scoring Template | Severity and Likelihood Model](/artifacts/eu/corporate-sustainability-due-diligence-directive/supplier-human-rights-risk-scoring-template.md): Use this practical CSDDD risk scoring template to prioritize supplier and partner risk based on severity, likelihood, geographic factors, sector.
- [EU CSDDD vs CSRD | Due Diligence Duties versus Sustainability Reporting](/artifacts/eu/corporate-sustainability-due-diligence-directive/csddd-vs-csrd.md): Compare the EU CSDDD and CSRD the right way. This guide explains how due diligence duties under Directive (EU) 2024/1760 differ from sustainability reporting.
- [EU CSDDD vs German LkSG | Scope, Chain Rules, and Enforcement Differences](/artifacts/eu/corporate-sustainability-due-diligence-directive/csddd-vs-german-lksg.md): Compare the EU CSDDD with the German LkSG using official sources.


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