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Glossary termPublished inCSDDD

Industry or multi-stakeholder initiative

What does "Industry or multi-stakeholder initiative" mean under the CSDDD?

A combination of voluntary due diligence procedures, tools and mechanisms, developed and overseen by governments, industry associations, interested organisations, including civil society organisations, or groupings or combinations thereof, that companies may participate in in order to support the implementation of due diligence obligations

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Last updated: 13 October 2026.

Four uses in the Directive

The definition describes a combination of voluntary due diligence procedures, tools and mechanisms. They are developed and overseen by governments, industry associations, interested organisations, including civil society organisations, or groupings of these, and companies may participate in them to support the implementation of due diligence obligations.

The Directive gives such initiatives four roles. In Articles 10 and 11, companies may develop their action plans in cooperation with them. In Articles 10(5) and 11(6), a company that verifies a partner's compliance may refer to independent third-party verification through them. In Article 13(6), Member States ensure that companies may fulfil the consultation obligations of that article through them, provided the consultation procedures meet its requirements. And in Article 29(4), as replaced by Directive (EU) 2026/470, participation does not rule out liability under national law.

Article 13(6) adds a limit. The use of such initiatives is not sufficient to fulfil the obligation to consult the company's own employees and their representatives.

Questions and answers

Can a company outsource stakeholder consultation to an initiative?

Partly. Article 13(6) allows companies to fulfil the consultation obligations through an initiative if its procedures meet the requirements of the article. It does not replace consultation of the company's own employees and their representatives.

Does joining an initiative limit a company's liability?

Article 29(4), as replaced, states that companies that participated in industry or multi-stakeholder initiatives may nevertheless be held liable in accordance with national law.

Glossary

  • Independent third-party verification

    Verification of the compliance by a company, or parts of its chain of activities, with human rights and environmental requirements resulting from this Directive by an expert that is objective, completely independent from the company, free from any conflicts of interest and from external influence, has experience and competence in environmental or human rights matters, according to the nature of the adverse impact, and is accountable for the quality and reliability of the verification.

  • Stakeholders

    The company’s employees, the employees of its subsidiaries and of its business partners, and their trade unions and workers’ representatives, and individuals or communities whose rights or interests are or could be directly affected by the products, services and operations of the company, its subsidiaries and its business partners and the legitimate representatives of those individuals or communities.

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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    Commission adopts guidelines under Article 19(2), points (a), (d) and (e), and guidance on model contractual clauses (Article 18)