How CSDDD Affects Procurement Teams: A Guide for 2029
Tomas Novotny
Solutions Expert
13 Feb 2026
About 4 mins
The Corporate Sustainability Due Diligence Directive (CSDDD) is a significant piece of EU legislation set to redefine corporate accountability.
For procurement teams, this directive is not just another regulation; it is a fundamental shift in how sourcing, supplier management, and risk mitigation are approached. It moves sustainability from a “nice-to-have” to a core business imperative, backed by legal liability and financial penalties.
So, how does CSDDD affect procurement teams? In short, it places procurement at the center of a company’s due diligence obligations. Teams will be legally responsible for identifying, preventing, and mitigating human rights and environmental harms throughout their company’s “chain of activities.” This includes everything from sourcing raw materials to managing downstream logistics partners. Procurement professionals will need to embed due diligence into their policies, conduct rigorous supplier assessments, and actively manage risks far beyond their direct, Tier 1 relationships.
This guide will explain how CSDDD affects procurement teams, detailing the new responsibilities and offering actionable steps to prepare your organisation for compliance ahead of the 2029 deadline.
Understanding CSDDD’s impact on procurement functions
The CSDDD introduces mandatory requirements that directly reshape traditional procurement processes. Instead of focusing primarily on cost and quality, teams must now integrate robust social and environmental risk management into every stage of the procurement lifecycle. The directive’s broad “chain of activities” scope means your team’s oversight must extend upstream to raw material extraction and downstream to logistics and transport partners.
New responsibilities for procurement under CSDDD
Procurement’s role will expand significantly. Key new responsibilities include:
- Integrating due diligence into policies: Your team must help develop and implement due diligence policies. This includes creating or updating a supplier code of conduct that outlines clear human rights and environmental standards.
- Adopting responsible purchasing practices: CSDDD requires companies to adopt purchasing policies that contribute to living wages and incomes for their suppliers. Procurement will be on the front line of implementing these fair practices.
- Supplier verification and contractual assurances: Seeking contractual assurances from suppliers to comply with your code of conduct is a core requirement. These agreements must be fair, reasonable, and non-discriminatory, and they need to be backed by verification measures to ensure compliance.
How does CSDDD affect procurement teams’ daily operations?
The directive’s requirements will have a tangible impact on the day-to-day tasks of sourcing and supplier management professionals. Here’s a breakdown of the key areas that will change.
Enhanced risk scoping and assessment
Under CSDDD, procurement teams must conduct risk-based due diligence. This involves identifying, prioritising, and addressing the most severe human rights and environmental risks across your supply chains.
What does this mean for your team?
- Initial Scoping: You will need to perform a comprehensive mapping of your supply chain to understand your “chain of activities.” This includes identifying direct and indirect suppliers, their locations, and the commodities you source.
- Risk Identification: Your team must identify inherent risks related to forced labor, child labor, freedom of association, gender discrimination, greenhouse gas emissions, and land rights, among others.
- Prioritisation: You must focus resources on areas where the risk of harm is most likely and most severe. This requires a systematic approach to prioritise high-risk supply chains for further assessment using tools like Self-Assessment Questionnaires (SAQs) and audits.
The future of procurement is responsible sourcing
The CSDDD solidifies a global trend toward mandatory human rights and environmental due diligence. For procurement teams, this represents an opportunity to build more resilient, ethical, and transparent supply chains. By managing social and environmental risks proactively, you can safeguard your company from reputational damage, legal penalties, and operational disruptions.
The requirements are complex, and the stakes are high. Fines for non-compliance can be up to 3% of a company’s global turnover, and compliance will be a factor in awarding public contracts.
The time to prepare is now. By taking decisive action, your procurement team can not only improve compliance but also create a competitive advantage and drive long-term business success.
Download our simple CSDDD guide for businesses here
Want to find out more?
At Sedex, we empower procurement teams to navigate the complexities of CSDDD compliance with confidence. Our platform provides the tools and insights you need to map your supply chain, assess risks, and implement effective due diligence processes.
