Simplifying EU CSRD and CSDDD compliance with automated LCA

The Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) are transforming the regulatory landscape for large companies in the EU. These regulations require extensive sustainability reporting and due diligence in supply chains, pushing businesses to address their environmental and social impacts. Both were significantly narrowed by the Omnibus I simplification in 2026, so it’s worth checking whether, and when, they apply to you.

In this blog, discover why these regulations matter and how Root’s automated Life Cycle Assessment (LCA) platform can support compliance with these regulations.

What do the CSRD and CSDDD mean, and why are they so important?

The CSRD, which entered into force in January 2023, replaced the Non-Financial Reporting Directive (NFRD) and governs sustainability reporting in the European Union (EU), aligning it with the rigour of financial reporting. Companies affected by this regulation must include detailed reports, as part of their management report, on their environmental, social and governance (ESG) impacts. The CSRD has led to the creation of the European Sustainability Reporting Standards (ESRS) which outline the reporting requirements.

What will they report on? Companies report on the sustainability topics that are material to them, assessed through double materiality: their impact on people and the environment across their value chain, and the sustainability risks and opportunities for their business. These sustainability standards set what to disclose, across five environmental topics (climate change, pollution, water and marine resources, biodiversity and ecosystems, and resource use and circular economy), four social topics and business conduct. In July 2026, the European Commission adopted a simplified version that cuts mandatory datapoints by more than 60%, removes all voluntary ones and replaces the planned sector-specific standards with guidance.

Not in scope? You can still answer requests for sustainability information from customers and banks with the voluntary VSME standard.

Meanwhile, the CSDDD requires companies to conduct due diligence on their supply chains for human rights and environmental issues and take action to address any identified problems. The obligation to adopt a climate transition plan and the EU-wide civil liability regime have been removed. Together, these regulations aim to increase corporate accountability and sustainability.

Since the Omnibus I simplification, both apply to far fewer companies:

CSRD and CSDDD requirements: how do they impact companies?

The CSRD and CSDDD significantly impact in-scope companies by requiring them to:

• Collect and Report Extensive Sustainability Data: Disclose detailed information on environmental impacts including water usage, waste management, greenhouse gas emissions, pollution and biodiversity, where these topics are material.
• Complete a Double Materiality Assessment: Conduct a double materiality assessment to evaluate both the impacts caused by the organisation and the risks and opportunities affecting the company.
• Manage Supply Chains More Rigorously: Conduct thorough due diligence on supply chains, investigating environmental impacts on key stages of a product’s lifecycle including raw material extraction, parts products, logistics and waste streams.
• Integrate Sustainability into Core Business Strategies: Incorporate sustainability practices into operations and governance structures.
• Obtain assurance on the sustainability statement: under the CSRD, the sustainability statement must receive limited assurance from an auditor or accredited provider.

Non-compliance can lead to fines set nationally (capped at 3% of net worldwide turnover under the CSDDD), damage to brand reputation and loss of stakeholder trust.

The power of automated LCA

Traditional LCA methods are impractical for complying with CSRD and CSDDD regulations. They are complex, time-consuming, costly and typically focus on one product at a time. This makes it difficult for businesses to provide the necessary environmental data on all products needed for comprehensive CSRD reporting and effective CSDDD due diligence.

This is where Root steps in. Root’s automated LCA SaaS platform simplifies compliance by managing thousands of product footprints simultaneously. It creates robust and comprehensive data for CSRD reporting, and environmental supply chain data that helps companies prioritise their CSDDD due diligence. By automating the LCA process, Root speeds up data collection and analysis, enhancing the reliability of environmental reporting and supporting companies in their due diligence efforts.

How can Root help with compliance?

Root supports CSRD reporting and the environmental side of CSDDD due diligence through:

• Data for CSRD Reporting: Root collects and centralises detailed environmental data for every product’s supply chain, which can be used for CSRD reporting. This includes the key environmental disclosures mandated by the European Sustainability Reporting Standards (ESRS). Root’s platform improves accuracy, saves time, and enhances the credibility of CSRD reports.
• Insights for Double Materiality Assessments: Root supplies essential data on environmental impacts and risks of products, providing valuable insights when conducting the double materiality assessment.
• Supply Chain Mapping: Root provides data on each product’s unique supply chain, helping companies map and manage their supply chains effectively. Showing which materials, processes and sourcing countries sit behind each product gives due diligence teams a clear starting point.
• Environmental Risk Prioritisation: CSDDD due diligence is risk-based, focusing first on where impacts are most likely and most severe. Root’s environmental hotspots, such as water use in water-scarce sourcing regions or toxicity from wet processing, help decide where to look first. Scenario modelling then shows the environmental effect of changing a material, process or supplier before committing to it.
• Answering Customer Due Diligence Requests: most brands fall below the CSDDD thresholds, but their large customers will ask them for supply chain and environmental data as part of their own due diligence. Root gives you that data, ready to share.

LCA covers environmental impacts. The human rights side of CSDDD, such as forced labour, wages and working conditions, as well as supplier audits, contractual assurances and grievance mechanisms, needs other tools alongside Root.

We can help

Root’s vision is to redefine the norm by making product footprints universal. Our platform conducts LCA for all products, helping businesses report effectively on regulations, avoid greenwashing, become industry leaders and grow.

Root partners with companies to support compliance with CSRD and CSDDD. Our automated LCA platform provides detailed environmental data for reporting, provides insights for double materiality assessments, maps supply chains and helps prioritise the environmental side of due diligence.

Interested to learn more? Get in touch with our team to discover how Root can help you achieve compliance and drive sustainable growth.