{"id":605,"date":"2025-04-06T10:49:43","date_gmt":"2025-04-06T10:49:43","guid":{"rendered":"https:\/\/www.modeon.claims\/due-diligence-what-does-the-new-regulation-mean-for-large-companies-and-consumers\/"},"modified":"2025-04-06T10:49:54","modified_gmt":"2025-04-06T10:49:54","slug":"due-diligence-what-does-the-new-regulation-mean-for-large-companies-and-consumers","status":"publish","type":"post","link":"https:\/\/www.modeon.claims\/en\/due-diligence-what-does-the-new-regulation-mean-for-large-companies-and-consumers\/","title":{"rendered":"Due Diligence: What does the new regulation mean for large companies and consumers?"},"content":{"rendered":"\n

Last June, Directive (EU) 2024\/1760 on due diligence[1]<\/a> was finally published, a regulation that obliges large companies to take responsibility for the adverse effects they generate throughout their chain of activities.<\/p>\n\n

Although at first glance it looks like a great success, the long process of developing the standard[2]<\/a> has reduced both the scope of the companies affected and the obligations they will have to comply with. In addition, a progressive compliance schedule has been established, starting in July 2027 and ending in July 2029. This means that, in the best case scenario, full implementation is still 3 years away. <\/p>\n\n

Nevertheless, the Directive introduces some new features that will undoubtedly make the most optimistic smile and force large companies to operate more responsibly in the market.<\/p>\n\n

Here are some of the most important elements of the European Directive.<\/p>\n\n

Which companies should implement a due diligence system?<\/strong><\/h2>\n\n

Those with more than 1,000 employees and a turnover of more than 450 million euros.<\/p>\n\n

In Spain, this would include companies such as Repsol, Mercadona, Endesa, Naturgy, Iberdrola, Inditex, Banco Santander, CaixaBank, El Corte Ingl\u00e9s, Carrefour, Telef\u00f3nica, Lidl, Stellantis, Renault, Seat, Ford, Mercedes-Benz, Iberia and Alcampo.<\/p>\n\n

What should they do?<\/strong><\/h3>\n\n

These companies must prevent, detect and mitigate adverse effects on human rights or the environment throughout their chain of activities.<\/strong><\/p>\n\n

They must also ensure that their business model is compatible with the objectives of the Paris Agreement, i.e. limiting global warming to 1.5\u00b0C and achieving climate neutrality by 2050 through a transition plan to mitigate climate change.<\/p>\n\n

What concrete steps should they take?<\/strong><\/h3>\n\n

Among others, companies must:<\/p>\n\n

    \n
  1. Detect and assess potential and actual adverse effects arising from its entire chain of activity (including own operations, subsidiaries and business partners).<\/li>\n<\/ol>\n\n