Indirect impact on SMEs Although the CSDDD does not directly govern SMEs , they will feel its effects indirectly as part of larger corporations ’ value chains .
The directive includes safeguards to protect SMEs , mandating that larger companies offer support such as capacity building , training and financial assistance .
Terminating relationships with SMEs is only permitted as a last resort to avoid disproportionate harm .
Interplay with other legislation The CSDDD interacts with existing EU regulations , including the Conflict Minerals Regulation , Batteries Regulation , Deforestation Regulation and the forthcoming Forced Labour Regulation . It establishes minimum harmonisation standards while allowing Member States to impose stricter obligations or expand the scope in certain areas .
100 February 2025