A new analysis by SOMO has identified approximately 7,000 companies that will be subject to the EU Corporate Sustainability Due Diligence Directive (CSDDD) when it comes into force between 2027 and 2029. The CSDDD Datahub, developed by SOMO, provides an overview of these companies based on their most recent turnover and employee figures, offering a clearer picture of the directive’s actual scope.
According to Datahub, around 5,000 of the affected companies are based in the EU, while the total number of corporate groups meeting the CSDDD threshold criteria stands at 4,300, of which 3,400 are in the EU. The Datahub enables users to search and filter information by host country and sector, offering an accessible resource for communities, workers, and trade unions seeking to determine which companies fall within the law’s remit.
A company is included in the Datahub if it meets one of the following criteria. Either it is an EU-based company with at least €450 million in turnover and 1,000 employees, or it is a non-EU corporate group that has generated at least €450 million in turnover within the EU.
While 7,000 individual companies meet the criteria, many are part of larger corporate groups, meaning the actual number of businesses required to comply with the directive is lower than previously estimated. SOMO’s analysis indicates that only 3,400 corporate groups within the EU will be covered by the new law, contradicting earlier claims that CSDDD compliance would place an overwhelming burden on European businesses.
SOMO’s findings challenge the European Commission’s broader company count, which does not account for corporate structures with multiple subsidiaries meeting the criteria. Previous research suggests that less than 0.1% of EU companies will be directly impacted by the directive. Despite claims that the CSDDD will have a significant economic impact, SOMO’s analysis indicates that its actual coverage is much narrower than suggested.
The CSDDD will be implemented in three phases. 31% of identified corporate groups must comply by 2027, 18% by 2028, and the remaining 50% will have until 2029, providing at least 4.5 years for companies to prepare.
As the European Commission prepares to review key sustainability regulations in February 2025, including the CSDDD, Corporate Sustainability Reporting Directive (CSRD), and Taxonomy Regulation, SOMO warns against misleading narratives suggesting that the directive imposes excessive regulatory burdens. Instead, it argues that the CSDDD plays a critical role in enhancing corporate accountability and should not be diluted in the face of deregulatory pressures.
The CSDDD Datahub has been compiled using data from Moody’s Orbis, LSEG Workspace, Company.info, national business registries, company annual accounts, and corporate websites. While every effort has been made to ensure accuracy, data limitations persist, particularly for non-EU companies, many of which do not disclose EU-specific turnover figures. SOMO plans to regularly update the Datahub to maintain accuracy and transparency.
