Study on the Economic Benefits of the EU Corporate Sustainability Due Diligence Directive (CSDDD)
Authors:
Johannes Jäger
Gonzalo Durán
Lukas Schmidt
Vincenzo Maccarrone
Benjamín Sáez
September 2025
This study led by Prof. Johannes Jäger unveils strong evidence that the EU Corporate Sustainability Due Diligence Directive (CSDDD) will bring significant economic benefits for Europe and beyond.
It demonstrates that the EU Directive is not only a vital tool for tackling human rights violations, particularly in the Global South, but also a driver of long-term economic welfare.
By creating a more sustainable and fairer framework for European businesses, the CSDDD strengthens competitiveness and innovation without sacrificing ethical standards.
Key findings include:
- Positive economic welfare effects: By reducing human rights violations, the CSDDD directly improves economic well-being, with especially significant benefits for workers and communities in the Global South.
- Boost to European competitiveness: The directive promotes forward-looking specialisation patterns that move away from exploitative practices, delivering dynamic gains at the company level and generating positive spill-over effects for the wider economy.
- Foundation for global standards: The CSDDD provides a crucial step toward binding international social and environmental regulations that will enhance both global human rights protections and Europe’s long-term economic performance.
- Risks of weakening the directive: Attempts to increase competitiveness and reduce bureaucracy by diluting the CSDDD are expected to fail. Such changes would undermine its effectiveness, impose costs without real benefits, and continue to leave European firms vulnerable to unfair competition from companies abroad engaging in social and environmental dumping.
The document calls for a stable and forward-looking policy framework that aligns industrial policy and macroeconomic management with human rights and environmental priorities. The CSDDD, it concludes, is a central pillar in achieving this vision.
Additional information
- The study is published by Arbeiterkammer Wien, CIDSE, ETUC, Misereor, Ver.di and other organisations.
- The study was officially launched at an event in the European Parliament in Brussels on 29 September 2025, hosted by MEP Anna Cavazinni.
- Press release, 29 September 2025
Contacts
- Johannes Jäger, Professor and Head of the Economics Department, University of Applied Sciences BFI Vienna, (Johannes.Jaeger(at)fh-vie.ac.at)
- Susana Hernández Torres, Corporate Regulation Officer, CIDSE (hernandez(at)cidse.org)
Cover photo: cargo boat with containers in Vietnam. Credit: Nathan Cima / Unsplash.