The European Commission has decided to postpone the implementation of the Corporate Sustainability Due Diligence Directive (CSDDD) by two years, now expected to take effect in 2028 or 2029, depending on the size of the company. This delay is part of a larger Omnibus Initiative aimed at giving member states and businesses additional time to adjust to the directive’s comprehensive due diligence requirements.
Fazlee Shamim Ehsan, the Executive President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), expressed a positive outlook on the postponement, stating, “This delay gives our member factories essential time to enhance their safeguards related to human rights and the environment.”
While the directive is currently under revision, EU lawmakers have assured that the core principles and protection levels from the original draft will remain unchanged. A final agreement on the updated directive is anticipated by the first quarter of 2026
In a related matter, the newly elected German Government has reaffirmed its commitment to modify the existing Supply Chain Due Diligence Act (LkSG) to align with the upcoming EU CSDDD. In the interim, Germany plans to suspend reporting requirements under the LkSG while still enforcing the fundamental due diligence obligations, focusing sanctions on serious human rights violations.
The extended timeline presents garment and footwear exporters in Bangladesh with a vital chance to prepare for a cohesive EU legal framework while aligning their efforts with national initiatives focused on sustainability and ethical business practices.
