The EU legislature has finally reached an agreement on the text of the Corporate Sustainability Due Diligence Directive (CS3D) (see here our previous client alert). The CS3D profoundly affects the ways companies active in Europe will manage their supply relationships and supply chains worldwide. The CS3D also establishes legal liability for companies regarding both environmental and human rights harm within their supply chain. EU and non-EU companies should be aware that violations of the CS3D may result in fines of up to 5% of their net worldwide turnover, harming the company’s reputation by naming and shaming, and potential private enforcement. Its global impact may be compared to that of the General Data Protection Regulation (GDPR).