Reassess whether due-diligence measures remain adequate and effective at least every 5 years, or ad hoc after a significant change or reasonable grounds for doubt
What changes
Companies' periodic due-diligence-effectiveness reassessment burden drops from an annual to a five-yearly cycle (with ad hoc reassessment still required when triggered).
Prior rule vs new rule
At least every 1 year
paragraph (8) amends Article 15 of the CSDDD on monitoring to extend the intervals in which companies need to regularly assess the adequacy and effectiveness of due diligence measures, from 1 year to five years.
Reassess whether due-diligence measures remain adequate and effective at least every 5 years, or ad hoc after a significant change or reasonable grounds for doubt
Who is affected
Burden drivers
Source text
Such assessments shall be based, where appropriate, on qualitative and quantitative indicators and be carried out without undue delay after a significant change occurs, but at least every 5 years and whenever there are reasonable grounds to believe that the measures are no longer adequate or effective or that new risks of the occurrence of those adverse impacts may arise.
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