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The CSDDD after the Omnibus: what has changed in the due diligence obligations themselves

· As of 18.10.2026 · 4 min read

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Image: AI-generated

Starting point

We have already reported on the new scope of the CSDDD – more than 5,000 employees and more than EUR 1.5 billion in net worldwide turnover – and on the postponement of its application to 26 July 2029 in the post “CSDDD and CSRD after the Omnibus”. This post adds the question of what the amending Directive (EU) 2026/470 has changed in the obligations themselves. It is based on the wording of Art. 4 of that Directive, which amends the CSDDD (Directive (EU) 2024/1760). The amending Directive was published in the Official Journal on 26 February 2026 and entered into force on the twentieth day following its publication (Art. 6).

Risk identification: scoping instead of comprehensive assessment

Art. 8(2) CSDDD now provides for a two-step approach. First, companies carry out a scoping exercise based on reasonably available information. Its purpose is to identify the areas of their own operations, those of their subsidiaries and those of their business partners where adverse impacts are most likely to occur and to be most severe. An in-depth assessment follows only in those areas.

Companies may request information from business partners only where that information is necessary. In the case of business partners with fewer than 5,000 employees, this applies only where the information cannot be obtained by other means (Art. 8(2a)). Reliance on independent reports, digital solutions, industry initiatives and information from the complaints procedure is expressly permitted (Art. 8(3)).

Prioritisation and last-resort measures

A new clarification concerns prioritisation: the mere fact that less severe impacts have not been addressed does not lead to penalties (Art. 9(4)).

The last-resort measures for impacts that cannot be prevented or brought to an end have also been reworded (Art. 10(6), Art. 11(7)). The original version provided for termination of the business relationship as a last resort. The new version instead sets out three steps:

  • no new or extended relationships with the business partner concerned,
  • suspension of the business relationship with respect to the activities concerned, where the law governing the contract so permits,
  • an enhanced prevention action plan or corrective action plan.

Before suspending, the company must weigh whether the consequences of suspension would be manifestly more severe than the adverse impact itself. In that case, there is no obligation to suspend; the decision must be justified to the supervisory authority.

Monitoring, climate plan, engagement

  • Monitoring: The effectiveness of measures must be assessed whenever there are grounds to do so and at least every five years (Art. 15).
  • Climate plan: Art. 22 CSDDD, which required transition plans for climate change mitigation, has been deleted.
  • Stakeholders: The definition has been narrowed (Art. 3(1)(n)), and certain consultation steps no longer apply (Art. 13(3)).

Harmonisation, penalties, liability

  • Harmonisation: Member States may not diverge from key obligations (including Art. 6, 8 and 9, parts of Art. 10 and 11, and Art. 14 to 16). Otherwise, stricter or more specific rules remain possible (Art. 4 CSDDD as amended).
  • Penalties: The maximum limit of pecuniary penalties must be set at 3 % of net worldwide turnover. Previously, the maximum had to be not less than 5 % (Art. 27(4)).
  • Liability: The former liability provision under Union law (Art. 29(1)) has been deleted. Where a company is liable under national law, those affected have a right to full compensation without overcompensation (Art. 29(2) as amended).

New deadlines for guidance

The Commission is to adopt general guidelines and guidance on voluntary model contractual clauses by 26 July 2027 (Art. 18, Art. 19(3)). The delegated acts on reporting under Art. 16 are to follow by 31 March 2029. Member States must transpose the CSDDD by 26 July 2028.

In Germany, according to the Federal Government’s plans, the LkSG is to be replaced by an “Act on International Corporate Responsibility” (“Gesetz über die internationale Unternehmensverantwortung”) (BT-Drs. 21/24741). No draft of this act could be found at the time of writing.

What companies typically examine

  1. Methodology: Can the existing risk analysis be divided into a scoping exercise and an in-depth assessment?
  2. Supplier requests: Are questionnaires sent to partners with fewer than 5,000 employees limited to what is necessary?
  3. Contracts: Do existing contracts allow the business relationship to be suspended?
  4. Documentation: Are prioritisation and suspension decisions reasoned in a traceable manner?

This post provides a general overview of the legal position and does not replace legal advice on individual cases.

Sources

  1. Deutscher Bundestag, Drucksache 21/2474: https://dserver.bundestag.de/btd/21/024/2102474.pdf (accessed 18.10.2026) ↩

Further sources

  • Directive (EU) 2026/470 of the European Parliament and of the Council of 24 February 2026 amending Directives 2006/43/EC, 2013/34/EU, (EU) 2022/2464 and (EU) 2024/1760 as regards certain corporate sustainability reporting requirements and certain corporate sustainability due diligence requirements, OJ L, 26.2.2026: https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32026L0470 (accessed 18.10.2026)
  • Directive (EU) 2024/1760 of the European Parliament and of the Council of 13 June 2024 on corporate sustainability due diligence and amending Directive (EU) 2019/1937 and Regulation (EU) 2023/2859 (CSDDD), original version: https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32024L1760 (accessed 18.10.2026)

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