Glossary
Glossary term

severity of an adverse impact

A regulatory term referring to the scale, scope or irremediable character of the adverse impact, taking into account the gravity of an adverse impact.

1 official sourcessingle_source

What does severity of an adverse impact mean?

Severity of an adverse impact is the CSDDD assessment concept built from the impact’s scale, scope, and irremediable character.

Official definitions by source

CSDDD

Directive (EU) 2024/1760 on corporate sustainability due diligence

the scale, scope or irremediable character of the adverse impact, taking into account the gravity of an adverse impact, including the number of individuals that are or may be affected, the extent to which the environment is or may be damaged or otherwise affected, its irreversibility and the limits on the ability to restore affected individuals or the environment to a situation equivalent to their situation prior to the impact within a reasonable period of time.

Reference: Article 3, point v

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CSDDD implementation timeline note

CSDDD entered into force on 25 July 2024. Member State transposition is required by 26 July 2026. The Directive applies first to the largest companies (net turnover > €1.5 billion EU-wide and > 1,000 employees) from 26 July 2027, with phased extension to smaller companies over the following years.

Practical application

This term matters when companies rank adverse impacts and decide which risks or actual harms must be addressed first under due-diligence processes.

Minespider commentary

For Minespider, severity of an adverse impact is a risk-ranking term for explaining why one issue receives higher due-diligence priority than another.

Common confusions

  • Assuming the everyday meaning of severity of an adverse impact is enough without checking the official source definition.
  • Using severity of an adverse impact as a loose generic label rather than the narrower meaning used in the source text.
  • Confusing severity of an adverse impact with a neighboring legal actor or responsibility term without checking how the source allocates obligations.