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Glossary termPublished inCSDDD

Adverse impact

What does "Adverse impact" mean under the CSDDD?

An adverse environmental impact or adverse human rights impact

Defined in / by

Last updated: 13 October 2026.

One term, two defined halves

Adverse impact is a collective term. It has no content of its own beyond the two definitions it joins: adverse environmental impact in point (b) and adverse human rights impact in point (c). Each of those is tied to a closed list in the Annex to the Directive. An impact on the environment or on persons that does not result from a breach of what the Annex lists is not an adverse impact in the Directive's sense, however serious it is under other law.

The Directive uses the term for potential and for actual impacts. Article 10 deals with potential adverse impacts, which a company prevents or mitigates, and Article 11 with actual adverse impacts, which it brings to an end or minimises. Article 12 adds remediation. How much attention an impact gets then depends on its severity and likelihood, which are handled in separate definitions and in the prioritisation provision in Article 9.

Because the Annex is a list, it can change. Article 3(2) gives the Commission the power to adopt delegated acts that add references to articles of international instruments ratified by all Member States, adjust references when instruments are modified, superseded or abrogated, and replace or add instruments in Part I, Section 2.

Questions and answers

Is every environmental or social harm an adverse impact?

No. The impact must result from a breach of a right, prohibition or obligation listed in the Annex, or meet the conditions in point (c)(ii).

Does the term include potential harm?

The definition speaks of an impact. Articles 10 and 11 apply the term to potential and to actual impacts respectively.

Glossary

  • Remediation

    Restoration of the affected person or persons, communities or environment to a situation equivalent or as close as possible to the situation they would have been in had an actual adverse impact not occurred, in proportion to the company’s implication in the adverse impact, including by financial or non-financial compensation provided by the company to a person or persons affected by the actual adverse impact and, where applicable, reimbursement of the costs incurred by public authorities for any necessary remedial measures.

  • Severity of an adverse impact

    The scale, scope or irremediable character of the adverse impact, taking into account the gravity of an adverse impact, including the number of individuals that are or may be affected, the extent to which the environment is or may be damaged or otherwise affected, its irreversibility and the limits on the ability to restore affected individuals or the environment to a situation equivalent to their situation prior to the impact within a reasonable period of time.

  • Severe adverse impact

    An adverse impact that is especially significant on account of its nature, such as an impact that entails harm to human life, health or liberty, or on account of its scale, scope or irremediable character, taking into account its gravity, including the number of individuals that are or may be affected, the extent to which the environment is or may be damaged or otherwise affected, its irreversibility and the limits on the ability to restore affected individuals or the environment to a situation equivalent to their situation prior to the impact within a reasonable period of time.

  • Adverse human rights impact

    An impact on persons resulting from an abuse of one of the human rights listed in Part I, Section 1, of the Annex to this Directive, as those human rights are enshrined in the international instruments listed in Part I, Section 2, of the Annex to this Directive; or an abuse of a human right not listed in Part I, Section 1, of the Annex, but enshrined in the human rights instruments listed in Part I, Section 2, of the Annex, provided that the three conditions of point (c)(ii) are met.

  • Adverse environmental impact

    An adverse impact on the environment resulting from the breach of the prohibitions and obligations listed in Part I, Section 1, points 15 and 16, and Part II of the Annex to this Directive, taking into account national legislation linked to the provisions of the instruments listed therein.

Regulations

  • Corporate Sustainability Due Diligence Directive (CSDDD)

    The Corporate Sustainability Due Diligence Directive is Directive (EU) 2024/1760. After Omnibus I, Member States must transpose it by 26 July 2028 and apply it from 26 July 2029, to companies with more than 5,000 employees and EUR 1.5 billion in net worldwide turnover. The Netherlands has a draft bill, the Wivo, which names the ACM as supervisor.

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