Requirement · DD-05

Seek contractual assurances from direct business partners that they will cascade the company's code of conduct to their own business partners

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

What changes

Companies gain a new, standing duty to seek contractual cascading assurances from direct business partners, regardless of whether any plausible-information trigger exists.

The rule

New — no predecessor

Obligation

Seek contractual assurances from direct business partners that they will cascade the company's code of conduct to their own 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

D1 — 1 of 7 marks fire on this provision.

Source text

Verbatim

irrespective of whether plausible information is available about indirect business partners, a company shall seek contractual assurances from a direct business partner that that business partner will ensure compliance with the company’s code of conduct by establishing corresponding contractual assurances from its business partners.

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