CSDDD Glossary
Every CSDDD term, in plain English
The Corporate Sustainability Due Diligence Directive (CSDDD, also called CS3D) comes with its own vocabulary: due diligence, chain of activities, in-scope company, the Omnibus I changes, the value-chain cap. Here is each term explained simply first, then with the precise legal phrasing, so you can read any CSDDD document without a law degree. Every definition is grounded in Directive (EU) 2024/1760 as amended by Omnibus I (Directive (EU) 2026/470, in force 18 March 2026).
Need the bigger picture first? Read what the CSDDD is, or browse the topic guides.
31 of 31 terms
- A
Adverse impact#
A harm to people or the planet that your business causes, contributes to, or is linked to, whether it has already happened or might happen. Spotting these is the core of due diligence.
An actual or potential adverse human rights impact or adverse environmental impact, defined by reference to rights and prohibitions in the Annex to the directive (drawn from international human-rights and environmental instruments).
See also: Salient human rights issue, Prevention & mitigation, Remediation, Human rights due diligence (HRDD)
- C
Chain of activities#
The slice of the supply chain the CSDDD actually covers. It includes upstream partners (design, sourcing, extraction, manufacture) and limited downstream activities (distribution, transport, storage), but excludes how customers use or dispose of the product.
The defined CSDDD term (narrower than "value chain"): upstream business partners plus limited downstream distribution, transport and storage. Excludes product use and disposal and, largely, the financial sector's downstream.
See also: Value chain, Direct / tier-1 business partner, Downstream, CSDDD, Omnibus I (Directive (EU) 2026/470)
Civil liability#
Being sued in court for failing your due-diligence duty. The CSDDD originally set an EU-wide right for victims to claim damages; Omnibus I removed that harmonised regime, so liability now depends on each country's existing national law.
The original Article 29 EU-wide harmonised civil-liability regime (with NGO/trade-union standing) was removed by Omnibus I. Liability is now left to existing national law; there is no EU mandate granting representative standing.
See also: Supervisory authority, Omnibus I (Directive (EU) 2026/470), Remediation
Climate transition plan#
A company plan to align its business with the goal of limiting global warming to 1.5°C. The CSDDD originally required companies to adopt and put such a plan into effect; Omnibus I significantly scaled this back, with the hard "put into effect" duty removed and reporting routed through CSRD.
The Article 22 transition-plan duty was significantly scaled back under Omnibus I: the obligation to adopt and put into effect a Paris-aligned plan was cut back / removed, with transition-planning disclosure flowing through CSRD.
See also: Omnibus I (Directive (EU) 2026/470), CSDDD, In-scope company
Code of conduct#
The set of rules a company expects its staff, subsidiaries and suppliers to follow on human rights and the environment. Under the CSDDD it must be backed by checks and verification, not just signed and filed.
A code of conduct, required as part of embedding due diligence (step 1), describing the rules and principles to be followed throughout the company and by business partners, supported by contractual assurances and verification.
See also: Due diligence policy, Prevention & mitigation, Due diligence, Direct / tier-1 business partner
Corporate Sustainability Due Diligence Directive#
The full, formal name of the CSDDD. It sets a legal duty of conduct: do the due diligence and act on what you find, rather than just disclose information (which is what the separate CSRD does).
Directive (EU) 2024/1760. Built on the OECD Guidelines for Multinational Enterprises, the OECD Due Diligence Guidance and the UN Guiding Principles on Business and Human Rights.
See also: CSDDD, CS3D, OECD Due Diligence Guidance, UN Guiding Principles (UNGPs)
CS3D#
A nickname for the same law as CSDDD: the three "D"s in Corporate Sustainability Due Diligence Directive. CSDDD and CS3D mean exactly the same thing.
Common shorthand for the Corporate Sustainability Due Diligence Directive (Directive (EU) 2024/1760), used to distinguish it from CSRD (the reporting directive).
See also: CSDDD, Corporate Sustainability Due Diligence Directive
CSDDD#
The EU Corporate Sustainability Due Diligence Directive. A law that requires the largest companies to find, prevent and fix human-rights and environmental harms across their own operations and their chain of activities. Smaller firms feel it indirectly, as suppliers to in-scope companies.
Directive (EU) 2024/1760 of 13 June 2024 on corporate sustainability due diligence, as substantially amended by the Omnibus I package (Directive (EU) 2026/470). Often abbreviated CS3D.
See also: CS3D, Omnibus I (Directive (EU) 2026/470), Due diligence, Chain of activities, In-scope company
- D
Direct / tier-1 business partner#
A supplier or partner you deal with directly, one step away in your chain. After Omnibus I, your CSDDD effort focuses on these tier-1 partners; you only dig deeper when you have credible signals of a problem further down.
A business partner with which the company has a direct commercial agreement. Omnibus I refocused due diligence on direct business partners, with indirect partners assessed only on "plausible information" of an adverse impact.
See also: Chain of activities, Due diligence questionnaire (SAQ), Value-chain cap, Risk-based approach
Downstream#
The part of the chain after a product leaves the company: distribution, transport and storage. The CSDDD covers only this limited downstream slice and excludes how the product is finally used or disposed of.
Limited downstream activities (distribution, transport, storage of the product) included in the "chain of activities." Excludes product use, disposal and (largely) the financial sector's downstream.
See also: Chain of activities, Value chain
Due diligence#
The ongoing process of looking for, preventing, stopping and accounting for the harm your business can cause to people and the environment. Under the CSDDD it is a six-step cycle, not a one-off audit.
A risk-based process aligned with the OECD Due Diligence Guidance: (1) embed in policies, (2) identify & assess impacts, (3) prevent & mitigate, (4) bring to an end / remediate, (5) engage stakeholders & run a complaints mechanism, (6) monitor & communicate.
See also: Human rights due diligence (HRDD), Due diligence policy, Risk-based approach, OECD Due Diligence Guidance, Scoping exercise
Due diligence policy#
A company's written, public commitment describing how it does due diligence: its approach, its code of conduct and how it expects partners to behave. It is the foundation of step one.
The due diligence policy required under Article 7, updated regularly, embedding due diligence into all relevant policies and management systems, and including a code of conduct.
See also: Code of conduct, Due diligence, Human rights due diligence (HRDD)
Due diligence questionnaire (SAQ)#
The questionnaire an in-scope company sends suppliers to gather data on human rights, environment and anti-corruption. If you are a smaller supplier, this is usually how the CSDDD reaches you, even though the law does not apply to you directly.
A self-assessment questionnaire (SAQ) used in step 2 to collect chain-of-activities information. Omnibus I's value-chain cap pushes toward standardised, proportionate questionnaires for smaller partners.
See also: Value-chain cap, Direct / tier-1 business partner, Scoping exercise, In-scope company
- G
Grievance / complaints mechanism#
A channel where workers, communities, unions or others can raise concerns or complaints about harms linked to a company. The CSDDD requires in-scope companies to provide one as part of step five.
The notification and complaints mechanism required under Article 14, accessible to persons and organisations with legitimate concerns about actual or potential adverse impacts in the chain of activities.
See also: Stakeholder engagement, Remediation, Due diligence
- H
Human rights due diligence (HRDD)#
The human-rights half of due diligence: checking whether your operations or suppliers harm people (forced labour, unsafe conditions, child labour, discrimination), and acting to prevent or fix it.
The process for identifying, preventing, mitigating and accounting for adverse human rights impacts, drawn from the UN Guiding Principles on Business and Human Rights. CSDDD pairs it with environmental due diligence in a single cycle.
See also: Due diligence, UN Guiding Principles (UNGPs), Salient human rights issue, Adverse impact, Living wage
- I
In-scope company#
A company large enough that the CSDDD applies to it directly. After Omnibus I that means EU companies with more than 5,000 employees and over €1.5bn worldwide turnover, or non-EU companies with over €1.5bn turnover generated in the EU. Smaller firms are caught only indirectly, as suppliers.
EU undertakings with > 5,000 employees AND > €1.5bn worldwide net turnover; non-EU undertakings with > €1.5bn net turnover generated in the EU. Applies to the ultimate parent. Single application date: 26 July 2029 (transposition 26 July 2028).
See also: CSDDD, Omnibus I (Directive (EU) 2026/470), Value-chain cap, Supervisory authority
- L
Leverage#
Your ability to influence a business partner to change harmful behaviour, for example through contracts, buying power or working together with others. The CSDDD expects you to use and, where possible, increase your leverage rather than simply walk away.
The capacity to effect change in the wrongful conduct of a business partner (an OECD/UNGP concept). CSDDD expects companies to use and build leverage as a preventive and corrective measure before considering disengagement.
See also: Prevention & mitigation, Remediation, Direct / tier-1 business partner
Living wage#
A wage high enough for a worker and their family to afford a decent standard of living: food, housing, healthcare, education and a little to save. It is one of the human-rights benchmarks behind CSDDD's due-diligence duties.
An adequate wage covering a decent standard of living, referenced among the human-rights instruments underpinning the directive's Annex (drawn from international labour standards).
See also: Human rights due diligence (HRDD), Salient human rights issue, Adverse impact
- O
OECD Due Diligence Guidance#
The international playbook the CSDDD is built on. It sets out the six-step due-diligence cycle for responsible business conduct that the directive turned into law.
The OECD Due Diligence Guidance for Responsible Business Conduct (2018) and the OECD Guidelines for Multinational Enterprises. CSDDD's process mirrors this framework.
See also: Due diligence, UN Guiding Principles (UNGPs), Corporate Sustainability Due Diligence Directive
Omnibus I (Directive (EU) 2026/470)#
The 2026 simplification package that dramatically rewrote the CSDDD. It raised the size thresholds, pushed back the deadlines, narrowed the scope to direct suppliers, relaxed monitoring and removed the EU-wide civil-liability regime. This amended version is the current law.
Directive (EU) 2026/470, published in the Official Journal on 26 February 2026 and in force from 18 March 2026. It amends both the CSDDD and CSRD. A 2025 "Stop-the-clock" directive (EU) 2025/1515 had postponed the original timeline while it was negotiated.
See also: CSDDD, In-scope company, Chain of activities, Civil liability, Climate transition plan
- P
Prevention & mitigation#
Step three: stopping a potential harm before it happens or reducing it. In practice this means action plans, contractual assurances backed by verification, and helping suppliers build their capacity.
The Article 10 step: taking appropriate measures to prevent or, where prevention is not possible, adequately mitigate potential adverse impacts, including prevention action plans and seeking contractual assurances.
See also: Remediation, Adverse impact, Leverage, Code of conduct, Due diligence
- R
Remediation#
Step four: when a harm has actually happened, bringing it to an end and putting it right, for example through compensation, restoration or a corrective action plan. Omnibus shifted the emphasis toward suspending rather than cutting off a supplier while a plan runs.
The Article 11 step: bringing actual adverse impacts to an end and providing remediation. Omnibus I emphasised suspending (not terminating) relationships while an action plan runs, so staying engaged does not by itself trigger liability.
See also: Prevention & mitigation, Adverse impact, Grievance / complaints mechanism, Due diligence
Risk-based approach#
Focusing your effort where harm is most severe and most likely, rather than treating every supplier the same. The CSDDD is explicitly risk-based, so a high-risk commodity or country gets more scrutiny than a low-risk one.
The principle, drawn from the OECD framework, that the depth and priority of due diligence is proportionate to the severity and likelihood of adverse impacts. Reinforced by Omnibus I (scoping, not full mapping).
See also: Scoping exercise, Salient human rights issue, Due diligence, Direct / tier-1 business partner
- S
Salient human rights issue#
The human-rights risks that matter most for your business: the ones that are most severe and most likely, where you should focus first. The CSDDD lets you prioritise these rather than treat every risk equally.
The most severe potential and actual human rights impacts, used to prioritise action under a risk-based approach where it is not feasible to address all impacts at once (severity and likelihood weighting).
See also: Adverse impact, Risk-based approach, Human rights due diligence (HRDD), Scoping exercise
Scoping exercise#
A lighter-touch way to map your risks: instead of mapping your entire supply chain in detail, you identify where adverse impacts are most likely or most severe and zoom in there. Omnibus I replaced full mapping with this.
The step-2 identification done as a risk-based scoping of where adverse impacts are most likely to be present and severe, followed by deeper assessment of priority areas. Omnibus I softened the original full supply-chain mapping duty.
See also: Risk-based approach, Value-chain mapping, Due diligence, Salient human rights issue
Stakeholder engagement#
Talking with the people affected by your business, such as workers, communities, unions and their representatives, at key points in the due-diligence process so decisions reflect those who bear the risk.
The Article 13 duty to carry out meaningful engagement with affected stakeholders (and their legitimate representatives) at relevant stages of the due diligence process.
See also: Grievance / complaints mechanism, Due diligence, Human rights due diligence (HRDD)
- U
UN Guiding Principles (UNGPs)#
The global standard for business and human rights, adopted by the UN in 2011. They introduced the idea of human-rights due diligence that the CSDDD now makes mandatory for the largest EU-linked companies.
The UN Guiding Principles on Business and Human Rights (2011), built on the "Protect, Respect and Remedy" framework. A key source for CSDDD's human-rights provisions.
See also: Human rights due diligence (HRDD), OECD Due Diligence Guidance, Remediation
- V
Value chain#
The whole life of a product, from raw materials to end-use and disposal. The CSDDD deliberately does not use this broad term; it uses the narrower "chain of activities" instead, so product use and disposal fall outside the duty.
A broader concept than the CSDDD's "chain of activities." Omnibus I confirmed the directive applies to the chain of activities only, not the full value chain.
See also: Chain of activities, Downstream, CSDDD
Value-chain cap#
A protection for small suppliers added by Omnibus I. In-scope companies generally cannot demand information beyond a standardised set from partners with fewer than 5,000 employees, to stop smaller firms drowning in questionnaires.
The Omnibus I information cap: in-scope companies may not, as a rule, require information from business partners with < 5,000 employees beyond a standardised set, unless it cannot reasonably be obtained otherwise.
See also: Due diligence questionnaire (SAQ), In-scope company, Direct / tier-1 business partner, Omnibus I (Directive (EU) 2026/470)
Value-chain mapping#
The detailed exercise of charting who is in your supply chain and where. The CSDDD originally required this; Omnibus I softened it into a risk-based scoping exercise, so full mapping is no longer strictly required.
The original step-2 obligation to map the chain of activities, softened by Omnibus I into a risk-based scoping of priority impacts.
See also: Scoping exercise, Chain of activities, Risk-based approach
This is guidance, not legal advice. Confirm with the official sources we link or a qualified adviser. Definitions reference Directive (EU) 2024/1760 (CSDDD), as amended by Omnibus I (Directive (EU) 2026/470).
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