Last resort for a potential impact

What is the requirement, in plain English?

Where a potential adverse impact was not prevented and not adequately reduced, the company must as a last resort avoid entering into or extending the relationship with the business partner concerned, suspend the relationship where the governing law allows it, and adopt an enhanced prevention action plan without undue delay. Before suspending, the company must assess whether suspension would cause manifestly more severe impacts; where the plan is still expected to succeed, continuing to engage does not by itself expose the company to penalties or liability.

What evidence does a regulator or an auditor ask for?

The enhanced prevention action plan, the suspension assessment and its reasons, and any report to the supervisory authority.

Which dates matter?

• Transposition of Article 4 (due diligence amendments): 26 July 2028

The transposition deadline for Articles 1 to 3 of the amending directive is 19 March 2027 (Article 5). For Article 4 it is 26 July 2028, applied from 26 July 2029.

What does it cross-reference?

• (EU) 2024/1760 Articles 11(7), 27, 29

How do I check a draft against this provision?

Paste your draft into the reading. The reading returns, per provision, whether a phrase specific to this requirement appears in your own words, quoted, with the article cited here. Where a line reaches nothing it reads no mapping identified.

Not legal advice; does not certify. Every field on this page carries its own source pointer, and the record is replayed by the pages, the check and the export from one reviewed record.