EU sustainability directive brings changes to component manufacturing

Waldom Electronics has released an analysis of the European Parliament’s Corporate Sustainability Due Diligence Directive (CSDDD) and its implications for the electronic component industry. The directive, passed in April 2024, establishes mandatory human rights and environmental obligations for companies operating within the European Union. The directive affects EU and non-EU companies, meeting specific turnover thresholds, with implementation beginning in 2027.

The CSDDD applies to EU companies with over 1,000 employees, a net worldwide turnover exceeding EUR 450 million, and non-EU companies generating over EUR 450 million within the EU. Companies must implement due diligence measures addressing human rights and environmental impacts across their entire value chain.

Under the directive, companies must identify potential adverse impacts, implement preventive measures, and establish monitoring systems. The legislation requires climate transition plans aligned with the Paris Agreement’s 1.5°C goal and integrates with existing EU sustainability frameworks.

Waldom’s article, “Corporate Sustainability Due Diligence Directive (CSDDD): What it Means for the Electronic Component Industry,” outlines key obligations and compliance timelines. The company’s approach aligns with CSDDD principles through waste reduction, energy efficiency, and circular economy initiatives.

For the electronic component industry, manufacturers must monitor greenhouse gas emissions, energy consumption, waste production, and water usage. The legislation emphasizes circular economy principles and sustainable product design.

EU Member States have until July 2026 to transpose the CSDDD into national law, with implementation beginning in 2027.