CSDDD vs. CSRD: two key regulations, similar in name but very different in substance.
Both are central to the ESG landscape in Europe, and more and more companies are having to deal with them.
But do we really understand how they differ and how they connect?
Spoiler: it’s not about choosing one or the other, or duplicating efforts.
It’s about understanding what each one requires and how to organize the information so it works in our favor.
If we don’t get this clear, we’re going to waste time, money, and opportunities.
But with a clear strategy, we can turn these regulations into a value lever.
In this article we’ll explain what the CSDDD is, what the CSRD is, and how to manage both smartly.
Let’s get to the point.
Talking about sustainability today is no longer just about image.
The European Union is raising the bar with regulations that can no longer be ignored.
And that’s where the CSRD and the CSDDD come in, two key pieces of the regulatory puzzle.
The problem: they are often mixed up, confused, or seen as separate procedures.
But if we don’t understand them properly, we’ll waste time and double our efforts.
Let’s break it down.
The CSRD (Corporate Sustainability Reporting Directive) is the regulation that completely changes how we report sustainability in Europe.
Good intentions are no longer enough.
This directive demands detailed reports, with verifiable data that show the real impact of the company.
Its goal is clear: that companies are held truly accountable for what they do in sustainability, just as they are already held accountable for their finances.
Who does it apply to? To many more companies than we might think.
We’re not just talking about large corporations.
The CSRD expands its scope and includes medium-sized companies, and even European subsidiaries of foreign groups.
If we meet certain criteria regarding size, revenue, or number of employees, we’re in.
The CSRD leaves no room for vague interpretations.
It demands structured ESG data, with clear and comparable metrics.
We’re talking about information on environmental, social, and governance impact.
And yes, companies must report risks, opportunities, and transition plans.
It’s not about telling how great we are.It’s about showing how we measure it, how we manage it, and how we integrate it into strategy.
The CSDDD (Corporate Sustainability Due Diligence Directive) goes to the root of the problem.
It doesn’t focus on reporting, but on taking action.
It requires companies to identify, prevent, and address negative impacts on human rights and the environment…
Not only in their operations, but throughout the entire supply chain.
Can we relax? Not really.
It’s not enough to just look inward.
We also have to monitor our suppliers and business partners.
The CSDDD demands ongoing due diligence processes.
That means identifying risks, implementing corrective measures, and proving we’re doing it.
And yes, this applies even outside Europe if we do business with actors who are within the EU.
The CSDDD is not a set of good intentions. It has real consequences.
Companies that fail to comply may face financial penalties, contract restrictions, and reputational damage.
But beyond the fear of punishment, the key is to do things right from the start.
Because if we don’t have control over our value chain, the problem isn’t the regulation, it’s us.
The first one forces us to report what we do.
The second one requires us to actually do it right.
Now that we understand this, let’s see how we can manage both without burning out.
We’re not looking at two separate paths.
The CSRD and the CSDDD are designed to work together.
One tells you what you need to report.
The other tells you what you need to do.
And if we play our cards right, we can leverage this connection to streamline processes and gain efficiency.
The CSRD focuses on sustainability reporting. It applies to companies that exceed certain size or revenue thresholds.
The CSDDD goes further. It applies even if part of the impact occurs outside our direct operations.
It includes our suppliers and business partners.
The CSRD requires reporting. It calls for transparency, metrics, and data comparability in ESG.
The CSDDD enforces action. It asks us to identify, prevent, and remedy real impacts, not just report them afterward.
The CSRD requires structured ESG data, with clear and comparable metrics.
We’re talking about information on environmental, social, and governance impact.
And yes, companies must report risks, opportunities, and transition plans. It’s not about telling how great we are.
It’s about showing how we measure it, how we manage it, and how we integrate it into strategy, following sustainable finance frameworks that make this information meaningful and comparable across the EU.
Both regulations change the way we operate.
But while the CSRD pushes us to integrate sustainability into strategy, the CSDDD forces us to redesign specific processes.
From procurement to supplier management, no area is left untouched.
Because once they apply, there will be no room for improvisation.
Waiting until it’s mandatory is already too late. Clients, investors, and the market are already demanding answers now.
Also, starting early allows us to test, adjust, and build a system that actually works, without rush or patchwork solutions.
Measuring, managing, and acting on ESG data is no longer a bonus. It’s what will define who stays in the game and who gets left out.
Companies that understand how these regulations interrelate can unify efforts, anticipate demands, and make better decisions.
And that, beyond simple compliance, becomes a real advantage over the competition.
Are we ready to use this knowledge to our advantage?
Because if we don’t, someone else will.
There are many companies trying to understand CSRD, CSDDD, taxonomy, Science Based Targets initiative (SBTi), or ISOs in isolation.
But the real challenge is how to connect all these fronts without duplicating efforts.
That’s where Dcycle comes in.
We’re not auditors or consultants. We are a solution for companies that want to activate their ESG strategy clearly, efficiently, and without wasting time.
Dcycle allows you to keep all your ESG information in one place, with no Excel sheets or endless processes.
We gather data from various sources (suppliers, operations, financial reports...) and structure it so it can serve multiple use cases.
That way, you can stop fighting with formats and start making data-driven decisions.
Reporting under CSRD?
Need to comply with CSDDD?
Asked to align with SBTi or ISOs?
It doesn’t matter which framework or how many reports you need to generate.
Our platform organizes the data once and distributes it wherever it’s needed.
No repeated work, no need to hire extra people just to get it done.
From the moment the process starts until you hit “submit report”, we’re there with a comprehensive solution.
We automate calculations, generate reports, validate data, and notify you if anything is missing.
So you can focus on strategy, not technical details.
No, but the scope is expanding. If you operate in Europe or are part of a global supply chain, chances are you’ll be affected soon.
You need reliable and traceable ESG data. That includes everything from energy consumption to labor policies, and of course your supply chain.
It depends on various factors: size, revenue, number of employees, and sector. Also whether you’re part of a group that is already subject to the rules.
Yes. With Dcycle, a single data set powers all the ESG reports you need.
Beyond sanctions, you’ll lose competitiveness in the market. Because those who don’t measure or report will no longer be considered reliable partners or attractive options for clients and investors.
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