CS3D (European Duty of Vigilance Directive)
European directive imposing on large companies a duty of vigilance regarding human rights and the environment in their value chains.
CS3D — Corporate Sustainability Due Diligence Directive
Directive (EU) 2024/1760 (CS3D or CSDDD) imposes a duty of vigilance on large companies to identify, prevent, mitigate and report on the negative impacts of their activities on human rights and the environment, including in their value chains.
Companies concerned
- Phase 1 (July 2027): companies > 5,000 employees and > EUR 1,500 million in global turnover
- Phase 2 (July 2028): companies > 3,000 employees and > 900 M EUR
- Phase 3 (July 2029): companies > 1,000 employees and > 450 M EUR
Bonds
Integrate vigilance into company policies, identify actual and potential negative impacts, prevent and mitigate impacts, establish a complaints mechanism, and publish an annual statement.
Link with international trade
CS3D directly impacts importers by requiring them to control their non-EU suppliers and subcontractors on issues of forced labor, working conditions, pollution and deforestation.
Sanctions
Up to 5% of global net turnover, civil liability for damages and publication of sanction decisions.