CSDDD: Proposal for a new corporate responsibility act
On 17 September, the corporate responsibility inquiry submitted its report A Corporate Responsibility Act (SOU 2026:56), containing proposals on how the EU Corporate Sustainability Due Diligence Directive (CSDDD) should be implemented into Swedish law.
The inquiry proposes a new corporate responsibility act requiring companies within its scope to work systematically to identify, prevent, mitigate and address negative effects on human rights and the environment in their own operations, subsidiaries and within their value chains. The directive applies to companies with more than 5,000 employees and an annual global net turnover exceeding EUR 1.5 billion. Companies or groups operating under franchise or licensing arrangements that meet the directive’s thresholds, as well as non-EU companies with net turnover exceeding EUR 1.5 billion within the EU, are also covered by the directive.
The inquiry estimates that approximately 70–90 Swedish companies will fall within the scope of the new act, although the rules will also have implications for other companies in the value chains. Suppliers and other business partners may, for example, be required to provide information, comply with new contractual obligations and adapt their processes to meet requirements imposed by companies subject to CSDDD. The inquiry proposes that the National Board of Trade will be designated as the competent supervisory authority.
Mannheimer Swartling partner Madeleine Edqvist participated as an expert in the inquiry:
“CSDDD represents a shift from soft law on responsible business conduct to binding due diligence requirements. Although the Swedish legislation implementing the directive is proposed to apply from July 2029, companies should start reviewing their risks, processes, contractual relationships and business models. This is not only about preparing for future requirements, as a systematic approach helps prevent negative effects on human rights and the environment while also strengthening companies’ resilience and competitiveness.”
The new act is proposed to apply from 26 July 2029.
Read the inquiry here.
