What EU Corporate Sustainability Due Diligence Directive (EU) 2024/1760 - Article 8: Prevention of Potential Adverse Impacts requires
Article 8 of the EU Corporate Sustainability Due Diligence Directive (CSDDD, 2024/1760) requires companies subject to the Directive to take appropriate measures to prevent, or where prevention is not possible, adequately mitigate potential adverse impacts on human rights and the environment that have been identified in their operations, subsidiaries, and value chain business relationships. Where a potential adverse impact cannot be prevented or adequately mitigated through the company's own measures, the company must seek contractual assurances from business partners regarding their conduct, and - where the impact is not prevented - must terminate or suspend the business relationship as a last resort. Article 8 also requires companies to develop and implement a prevention action plan covering medium-term and long-term measures. Companies must provide financial and non-financial support to SME business partners to enable their compliance. Measures must be reasonable and proportionate to the probability and severity of the potential adverse impact. Phased transposition applies: companies with 5,000+ employees and EUR 1.5bn turnover from 26 July 2027; 3,000+ employees and EUR 900m turnover from 26 July 2028; 1,000+ employees and EUR 450m turnover from 26 July 2029.
Pillar: Sustainability & ESG · Authority: European Parliament and the Council of the European Union · Version: 2.0.0 · Last updated:
Primary source: https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32024L1760
SHA-256 integrity: 494ca828207f28137e42f0b68d76e62328dcccb9fff3bab33a248b1a75d6cebf
Primary Citations — 8 traced to source
- Article 8 — EU CSDDD Directive (EU) 2024/1760 - Article 8: Prevention of Potential Adverse Impacts
- Article 7 (identification process that feeds Article 8 prevention obligations) — EU CSDDD Directive (EU) 2024/1760 - Article 7: Identification and Assessment of Adverse Impacts
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