EU Commission Announces Delays and Simplifications for Supply Chain and Sustainability Rules
The European Commission announced just a few days ago in a press statement that it will postpone the implementation of the EU supply chain law (CSDDD) and ease related reporting obligations. Originally set to take effect in 2027, the new timeline extends the first implementation deadlines for the member states to 2028, giving companies more time to adjust. Additionally, reporting requirements will be significantly reduced, with only the largest corporations remaining subject to sustainability disclosures. These measures aim to alleviate bureaucratic burdens and enhance European competitiveness.
The decision follows strong criticism from the business sector, which argued that the stringent requirements placed an excessive administrative and financial strain on companies. By reducing reporting obligations and simplifying compliance, the EU expects to save businesses approximately €320 million annually. However, the changes still require approval from EU member states and the European Parliament.
For companies in Thailand, these adjustments are particularly beneficial. Many Thai businesses act as suppliers to European firms and were facing increased due diligence demands under the original CSDDD framework, as large companies were expected to pass on part of their due diligence obligations to their suppliers—either contractually or, at the very least, in practice. By delaying implementation of the directive and focusing compliance requirements solely on the largest companies, suppliers in Thailand will have more time to adjust and will likely experience less pressure and administrative complexity.
For details on the CSDDD and its impact on businesses in Thailand, see our blog post “The Corporate Sustainability Due Diligence Directive (CSDDD) and Its Impact on Companies with Subsidiaries or Suppliers in Thailand“.
