Our summary
Directive (EU) 2024/1760 on corporate sustainability due diligence entered into force on 25 July 2024. It sets a due diligence duty for very large companies: they must identify and address actual and potential adverse human rights and environmental impacts in their own operations, their subsidiaries and their chains of activities. This is supported by complaints and notification procedures, monitoring and public reporting. Fines can reach 3% of net worldwide turnover for the most serious breaches, and affected people can claim compensation.
The Omnibus I simplification package changed the directive a lot. Directive (EU) 2025/794 delayed the dates, and Directive (EU) 2026/470 (in force since 18 March 2026) changed the substance. According to the Commission, the rules now cover EU companies with at least 5,000 employees and EUR 1.5 billion net worldwide turnover, and non-EU companies with at least EUR 1.5 billion net turnover in the EU. Companies may focus on areas where impacts are most likely and most severe. Member States must transpose the rules by 26 July 2028 and apply them from 26 July 2029; the annual reporting part applies to financial years starting on or after 1 January 2030. Commission guidelines are due by July 2027.
How auditors use it: Check whether the group is in scope, including non-EU parents with large EU sales. If it is, review readiness of the supplier due diligence process, the complaints channel and value chain risk mapping well before 2029.