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) A4-11: Last-resort measures for actual adverse impacts: no new relationships, suspension and enhanced corrective plan (replaced Article 11(7) of Directive (EU) 2024/1760)

What does A4-11 require?

Where an actual adverse impact cannot be brought to an end or its extent minimised, the company must, as a final step and for as long as the impact persists, refrain from new or extended relationships with the partner, suspend the relationship for the activities concerned where the governing law allows, and adopt and implement without undue delay an enhanced corrective action plan where success is reasonably expected; while that expectation lasts, continued engagement alone does not attract penalties or liability. Before suspending it must weigh whether suspension would cause manifestly more severe harm and, if so, may continue and justify the choice to the supervisor; a suspension requires mitigation of its effects, reasonable notice and review, and a decision not to suspend requires monitoring and periodic reassessment.

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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