LRQA has published its CSDDD Readiness Index, a new report on how companies are preparing for the EU Corporate Sustainability Due Diligence Directive (CSDDD). It finds that most in-scope companies are still in the early stages of preparation, with value chain scope and impact assessment the biggest gaps.
The Index is based on a survey of 34 businesses conducted in June and July 2026. Respondents come from sectors including consumer goods, food and hospitality, pharma, infrastructure, energy and industrial manufacturing. Their headquarters are split between the EU and non-EU markets, including the US, UK and Switzerland. The report also draws on LRQA's experience advising companies on responsible sourcing and human rights due diligence.
The Omnibus I package, the EU's simplification of its sustainability rules including CSDDD, was finalised in February 2026, and CSDDD compliance is now required from July 2029. The extra time has not reduced how much due diligence the Directive expects. The Index finds a clear gap between how far companies have got in their internal preparation and how deep their due diligence will ultimately need to go:
- Implementation is still early-stage - 72% of in-scope companies are at the early-awareness or initial-implementation stage, and 53% have yet to complete a comprehensive adverse impact assessment in line with CSDDD requirements.
- Value chain scope falls short - Close to two-thirds of companies focus their due diligence mainly on direct (Tier 1) suppliers and their own operations rather than the full chain of activities, which can leave the areas of potentially highest risk further upstream out of view.
The full report also explores who owns CSDDD inside the business, how companies are approaching prevention and mitigation, the state of grievance mechanisms, and what the frontrunners are doing differently. The survey also shows that CSDDD's reach extends beyond the EU and beyond the companies it directly regulates.
Theresa Gigov, Associate Director Consulting at LRQA, said:
"The Omnibus process has given companies more time to implement CSDDD, but that is not a reason to slow down. The businesses furthest ahead have already assigned ownership, scoped their value chain and identified their priority impacts. Those are the same steps still outstanding for the 72% in early implementation. Companies that use this window to build those foundations will be ready for 2029 in practice, not just on paper."
Download the full report for LRQA's expert perspective on each finding and practical steps to become CSDDD-confident by 2029.
