The European Commission has decided to delay the implementation of the EU Supply Chain Act by one year, giving companies more time to prepare for the new requirements. The Commission announced on Wednesday that the deadline for the new rules will be shifted to July 26, 2028. The Supply Chain Act will also be simplified, with companies no longer required to ensure the compliance of human rights and environmental standards throughout their entire supply chain, but only with their direct business partners. The proof of compliance will no longer be required annually, but only every five years.
These measures are part of a new package of proposals aimed at simplifying EU regulations, boosting competitiveness and releasing additional investment capacities, which was agreed upon on Wednesday. The Commission hopes that the measures will save annual administrative costs of 6.3 billion euros and mobilize an additional 50 billion euros in public and private investment to support the political priorities.
“The EU companies will benefit from streamlined rules for sustainability reporting, due diligence in the sustainability area and the taxonomy” said European Commission President Ursula von der Leyen. “This will ease the life of our companies and at the same time ensure that we stay on the path to our decarbonization targets.” Further simplifications are also on the way, according to the EU Commissioner.