EU Omnibus I Directive (Directive (EU) 2026/470)
Article 4: Amendments to the CSDDD (Directive (EU) 2024/1760) – EU Omnibus I Directive (Directive (EU) 2026/470)

EU Omnibus I Directive (Directive (EU) 2026/470) A4-10: Last-resort measures for potential adverse impacts: no new relationships, suspension and enhanced prevention plan (replaced Article 10(6) of Directive (EU) 2024/1760)

What does A4-10 require?

Where a potential adverse impact cannot be prevented or adequately mitigated, the company must, as a final step and for as long as the impact persists, refrain from new or extended relationships with the partner concerned, suspend the relationship for the activities concerned where the governing law allows (including to build leverage), and promptly adopt and carry out a reinforced prevention plan where success is reasonably expected; continuing engagement while that expectation holds does not by itself attract penalties or liability. Termination is no longer required. Before suspending, the company must assess whether suspension would cause manifestly more severe harm, in which case it need not suspend and must be able to justify this to the supervisor. When it suspends it must limit the effects, give reasonable notice and keep the decision under review; when it does not, it must monitor the impact and periodically reassess.

Maintained by Gerard Blokdyk

Other controls in Article 4: Amendments to the CSDDD (Directive (EU) 2024/1760) – EU Omnibus I Directive (Directive (EU) 2026/470)

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