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Simplification · DD-03

Limit the in-depth impact assessment, as a general rule, to your own operations, your subsidiaries and your direct business partners

Addressee Companies subject to due diligence duties under Directive (EU) 2024/1760Act COM(2025) 81, 2025/0045 (COD)Article Art. 4(4), replacing Art. 8(2)(b) of Directive (EU) 2024/1760Class Businesses

What changes

The mandatory in-depth-assessment population narrows from potentially the whole chain of activities to, as a general rule, direct business partners only — indirect partners drop out of the default duty (though a conditional duty to reach them survives via new Art. 8(2a), see DD-04).

Prior rule vs new rule

Prior rule
Obligation

Article 5 of Directive (EU) 2024/1760 obliges Member States to ensure that large companies above a certain size conduct risk-based human rights and environmental due diligence.

Prior wording not available in the source file.

New rule
Obligation

Limit the in-depth impact assessment, as a general rule, to your own operations, your subsidiaries and your direct business partners

Who is affected

Addressee
Companies subject to due diligence duties under Directive (EU) 2024/1760
Class
Businesses
Sectors
No sector named — applies by size or activity
Applies
Once transposed by Member States (transposition due within 12 months of this Directive's entry into force)

Burden drivers

No burden drivers recorded on this provision.

Source text

Verbatim

based on the results of the mapping as referred to in point (a), carry out and in-depth assessment of their own operations, those of their subsidiaries and, where related to their chains of activities, those of their direct business partners, in the areas where adverse impacts were identified to be most likely to occur and most severe.

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