Corporate Sustainability
Due Diligence Directive (CSDDD)
Why GCC Companies Must Act Now
The Corporate Sustainability Due Diligence Directive (CSDDD) is a groundbreaking EU regulation that requires large companies to identify, prevent, and mitigate human rights and environmental risks across their operations and entire global value chains.
Although the law is aimed at EU-based companies, its impact extends directly to suppliers and partners in the Middle East, including those in the UAE, Saudi Arabia, Qatar, and other GCC markets.
Why Does It Affect GCC Companies?
If your company:
- Exports to European clients (B2B or B2G),
- Is part of a manufacturing, logistics, energy, or industrial supply chain with links to the EU,
- Operates in a sector with elevated environmental or human rights risks (e.g. textiles, oil & gas, construction, agri-food),
Then European clients will soon demand concrete evidence of your environmental and social compliance.
What Does the CSDDD Require?
EU companies subject to the directive must.
This means GCC-based suppliers and service providers will be audited, screened, and contractually required to meet EU sustainability expectations.
01
Conduct thorough ESG due diligence across all direct and indirect partners
02
Identify and address risks of:
– Child labor, forced labor, unsafe working conditions
– Environmental degradation, deforestation, toxic emissions
03
Take preventive or remedial action
04
Monitor suppliers and report publicly on progress
Who Does the CSDDD Apply to?
EU Companies
1,000+ employees and €450M+ global turnover
Non-EU Companies
€450M+ turnover within the EU
Parent Companies
Consolidated group meeting above thresholds
Licensing Models
Royalty-based EU entities with €22.5M+ royalties and €80M+ turnover
Our Services
We support GCC-based companies — manufacturers, distributors, exporters, contractors — to prepare for CSDDD through
01
Value chain due diligence mapping
02
Human rights and environmental risk assessments
03
ESG policy alignment and reporting
04
Supplier documentation kits and audit readiness
05
Digital traceability solutions
06
Legal contract review for EU client clauses
07
Climate transition planning & sustainability strategy