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Glossary termPublished inCSDDD

Remediation

What does "Remediation" mean under the CSDDD?

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

Defined in / by

Last updated: 13 October 2026.

Restoration, proportion and compensation

The definition has three parts. The aim is restoration of the affected persons, communities or environment to a situation equivalent, or as close as possible, to the one they would have been in had the actual adverse impact not occurred. The measure is proportionate: it is in proportion to the company's implication in the adverse impact. And the forms include financial or non-financial compensation provided by the company to the affected persons and, where applicable, reimbursement of the costs public authorities incurred for any necessary remedial measures.

The definition speaks of an actual adverse impact. Potential impacts are dealt with by prevention under Article 10, so remediation does not apply to them. The term is used in Article 12, which deals with remediation of actual adverse impacts, and in Article 14, where it appears among the matters a complainant can discuss with the company's representatives.

The definition is not the liability rule. Article 29(2) deals with compensation for injured persons under national law, giving a right to full compensation, without overcompensation, where a company is held liable for damage caused by a failure to meet the due diligence requirements. The two operate separately, and a company's remediation does not on its face settle a claim under national law.

Questions and answers

Does remediation always mean paying compensation?

No. The aim is restoration. Compensation, financial or non-financial, is one of the forms the definition includes.

Does remediation apply to potential impacts?

The definition refers to an actual adverse impact. Potential impacts are handled by prevention under Article 10.

Glossary

  • Adverse impact

    An adverse environmental impact or adverse human rights impact.

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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