GLOSSARY
CSDDD (EU Corporate Sustainability Due Diligence Directive)
The Corporate Sustainability Due Diligence Directive (CSDDD) is an EU directive that legally requires sufficiently large EU-based companies to identify, prevent, and remedy human-rights and environmental risks not just in their own operations but across their supply chains. Unlike voluntary norms, failing to meet the due-diligence obligation can lead to sanctions, including civil liability.
Why it matters for Tier-2/3
To comply with the CSDDD, EU OEMs and large parts makers must widen their due-diligence scope down into their supply chains, so Korean Tier-2/3 suppliers are increasingly seeing new human-rights and environmental clauses appear in contracts or being asked for due-diligence-related documentation. Because the regulatory timeline keeps shifting, it's worth checking customer communications periodically.
Related
Informational only — this does not replace an official ESG evaluation. Independent content; not affiliated with or endorsed by any framework organization.