Carry out an in-depth assessment of an indirect business partner where plausible information suggests an adverse impact there, or where an indirect structure is used to circumvent the direct-partner-only rule
What changes
Companies must still reach indirect business partners, but now only when specific trigger conditions (plausible information, or circumvention) are met — narrower than a blanket chain-wide duty, but a real, newly-codified conditional obligation.
Prior rule vs new rule
Prior wording not available in the source file.
Plausible information suggesting an adverse impact at an indirect business-partner level, or an artificial arrangement circumventing the direct-partner assessment rule
Carry out an in-depth assessment of an indirect business partner where plausible information suggests an adverse impact there, or where an indirect structure is used to circumvent the direct-partner-only rule
Who is affected
Burden drivers
Source text
Where a company has plausible information that suggests that adverse impacts at the level of the operations of an indirect business partner have arisen or may arise, it shall carry out an in-depth assessment. The company shall always carry out such an assessment where the indirect, rather than direct, nature of the relationship with the business partner is the result of an artificial arrangement that does not reflect economic reality but points to a circumvention of paragraph 2, point (b). Where the assessment confirms the likelihood or existence of the adverse impact, it is deemed to have been identified.
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