The Non-Negotiables: CSDDD and the Case for Building Trust Now

Image Source: OCED 
 
By Sanchita Banerjee Saxena and Silvia Fregoni
 
With the European Union’s Omnibus package now formally adopted, the period of uncertainty surrounding the Corporate Sustainability Due Diligence Directive (CSDDD) has come to an end. The package narrowed parts of the Directive, but it should not be read as a signal that companies no longer need to act.
 
What remains under the CSDDD still includes a set of non-negotiables: core operational obligations that go well beyond what many companies do today. These include identifying risks through meaningful stakeholder engagement, operating effective grievance and remedy mechanisms, and aligning business relationships with human rights expectations.
 
These capabilities cannot be built overnight. They require time, internal coordination, and systems that workers, suppliers, and stakeholders will trust enough to use. This brief identifies the key human rights obligations after Omnibus, explains why they demand action now, and highlights best practices.

CSDDD and the Case for Building Trust Now

About the Authors:
 
Sanchita Banerjee Saxena teaches classes about business, labor, and global supply chains at UC Berkeley. She is also currently a Senior Advisor to Article One, a human rights consulting firm, and a Senior Academic Fellow at the Berkeley Center for Law and Business at Berkeley Law.
 
Silvia Fregoni is a Senior Academic Fellow at the Berkeley Center for Law and Business at Berkeley Law. She researches corporate governance, sustainability regulation, and climate disclosure, and teaches in Berkeley Law’s Postdoctoral fellowship and executive education programs.