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 part of the formal vocabulary used in supply-chain due diligence, adverse-impact governance, and corporate responsibility. For this glossary, the key point is understanding how the source defines the term and where that definition sits within broader compliance or data requirements.

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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Why it matters in practice

In practice, this term matters when mapping who is responsible for obligations, declarations, market placement, recordkeeping, or due-diligence steps within supply-chain due diligence, adverse-impact governance, and corporate responsibility.

Minespider commentary

For Minespider, severity of an adverse impact is best treated as a responsibility and workflow term. The important question is which actor, document, or compliance step the source is actually assigning through this definition.

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.